{"success":true,"data":{"pressRelease":{"id":"177721","rtpr_id":"nPn6Y75sKa-20261022","ticker":"EFSI","exchange":"NASDAQ","all_tickers":["EFSI"],"title":"EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2026 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND","author":"PR Newswire","published_at":"2026-10-22T20:10:00.612Z","article_body":"EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2026 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND\nPR Newswire\n\nWASHINGTON, Oct. 22, 2026\n\nWASHINGTON, Oct. 22, 2026 /PRNewswire/ -- Eagle Financial Services, Inc.\n(NASDAQ: EFSI) (the \"Company\"), the holding company for Bank of Clarke (\"the\nBank\"), announced its third quarter 2026 results. Also, on October 22, 2026,\nthe Board of Directors announced a quarterly common stock cash dividend of\n$0.31 per common share, payable on November 13, 2026, to shareholders of\nrecord on November 2, 2026. The following table presents selected financial\nperformance highlights for the periods indicated:\n\n                                   Three Months Ended\n                                   September 30,                                          June 30,                                               September 30,\n                                   2026                                                   2026                                                   2025\n                                   (Dollars in thousands, except per share data)\n                                                          As adjusted( (1))                                      As adjusted( (1))\n Consolidated net income           $    4,750             $          5,020                $    4,981             $          2,227                $         5,584\n\n Consolidated noninterest income   $    5,296             $          5,296                $    8,590             $          5,104                $         5,165\n\n Consolidated noninterest expense  $    16,127            $          15,785               $    15,531            $          15,531               $         14,344\n\n Earnings per share - basic and    $    0.88              $          0.93                 $    0.92              $          0.41                 $         1.04\n diluted\n\n Annualized return on average           9.66    %                    10.21      %              10.35   %                    4.63       %                   12.20     %\n equity\n\n Annualized return on average           1.01    %                    1.07       %              1.08    %                    0.48       %                   1.10      %\n assets\n\n (1) Non-GAAP financial measure - Excluding the tax effected impact of merger\n expenses during the quarter ended September 30, 2026 and the gain on sale of\n other assets during the quarter ended June 30, 2026. See the \"Reconciliation\n of GAAP to Non-GAAP Performance Highlights\" table for a reconciliation of\n these measures to comparable measures calculated in accordance with GAAP.\n\nAdditional key highlights for the third quarter of 2026 are as follows:\n\n * Announced a proposed strategic merger with John Marshall Bancorp, Inc. (\"John\nMarshall\"), a transformative transaction expected to enhance scale, market\npresence, and long-term shareholder value.\n * Net loans increased by $32.4 million or 2.19% while deposits increased by\n$21.3 million or 1.33%, in each case compared to June 30, 2026.\n * Net interest margin increased from 3.86% for the quarter ended June 30, 2026\nto 3.95% for the quarter ended September 30, 2026. Net interest spread\nincreased from 3.01% for the quarter ended June 30, 2026 to 3.09% for the\nquarter ended September 30, 2026.\nBrandon Lorey, President and CEO, stated, \"The third quarter was an important\none for EFSI, with strong execution across the franchise while we also\nannounced our proposed merger with John Marshall Bancorp. Net loans grew $32.4\nmillion during the quarter, reflecting both strong customer demand and the\ncontinued efforts of our lending teams, while our net interest margin improved\nto 3.95% as the balance sheet actions we have taken over the past two years\ncontinued to deliver results. We are entering this combination from a position\nof strength, and we believe bringing together two strong community banking\nfranchises creates an opportunity to deliver meaningful long-term value for\nour shareholders. I could not be prouder of our team for staying focused on\nour customers and communities while also taking on the additional work\nrequired to prepare for what is ahead.\"\n\nSummary\n\nNet income for the quarters ended September 30, 2026 and June 30, 2026 was\n$4.8 million and $5.0 million, respectively. Net income was $5.6 million for\nthe quarter ended September 30, 2025. During the third quarter of 2026, the\nCompany incurred $342 thousand of pre-tax merger-related expenses related to\nthe announced merger with John Marshall in September 2026. During the second\nquarter of 2026, the Company sold its membership interest in Bearing Insurance\nGroup, LLC (\"Bearing\") to an unaffiliated third party and recognized a pre-tax\ngain of $3.5 million, which was recorded in gain on sale of other assets in\nthe consolidated statements of income. Excluding the tax-effected impact of\nthe merger-related expenses incurred during the third quarter of 2026 and the\ngain on the sale of Bearing recognized during the second quarter of 2026,\nadjusted net income for the quarters ended September 30, 2026 and June 30,\n2026, were $5.0 million and $2.2 million, respectively. Adjusted net income is\na non-GAAP financial measure. Please refer to the \"Reconciliation of GAAP to\nNon-GAAP Performance Highlights\" table for additional information.\n\nFor the quarter ended September 30, 2026, adjusted net income increased $2.8\nmillion, or 125.4%, compared to the quarter ended June 30, 2026, and decreased\n$564 thousand, or 10.1%, compared to the quarter ended September 30, 2025.\nThe increase from the quarter ended June 30, 2026 was primarily driven by a\nlower provision for credit losses. The decrease compared to the quarter ended\nSeptember 30, 2025 was primarily attributable to higher salary and employee\nbenefit expenses. Additional details regarding these changes are provided\nbelow.\n\nInterest Income\n\nTotal loan interest income was $22.7 million and $21.7 million for the\nquarters ended September 30, 2026 and June 30, 2026, respectively. Total loan\ninterest income was $20.7 million for the quarter ended September 30, 2025.\nCompared to the quarter ended September 30, 2026, total loan interest income\nincreased $1.0 million or 4.6% from the quarter ended June 30, 2026 and\nincreased $2.0 million or 9.8% from the quarter ended September 30, 2025.\nAverage loans during the quarter ended September 30, 2026 increased by $13.6\nmillion or 0.9% from the quarter ended June 30, 2026 while the tax equivalent\nyield on average loans increased 14 basis points over the same time period.\nAverage loans increased $66.3 million or 4.6% between the quarter ended\nSeptember 30, 2026 and September 30, 2025 while the tax equivalent yield on\naverage loans increased 28 basis points over the same time period. Overall,\nhigher average loan balances combined with an increase in the tax-equivalent\nyield on average loans contributed to the growth in loan interest income\ncompared to both the linked and prior-year quarters.\n\nInterest and dividend income from the investment portfolio was $1.1 million\nand $1.3 million for the quarters ended September 30, 2026 and June 30, 2026,\nrespectively. Interest and dividend income from the investment portfolio was\n$1.4 million for the quarter ended September 30, 2025. The tax equivalent\nyield on average investments for the quarter ended September 30, 2026 was\n3.96%, which decreased 38 basis points from 4.34% from the quarter ended June\n30, 2026 and decreased 34 basis points from 4.30% for the quarter ended\nSeptember 30, 2025. The decrease in yield compared with the quarters ended\nJune 30, 2026 and September 30, 2025 primarily reflects the decline dividend\nincome during the quarter due to a lower Federal Home Loan Bank stock balance\nfollowing the repayment of FHLB advances.\n\nInterest Expense\n\nTotal interest expense was $7.6 million and $7.4 million for the three months\nended September 30, 2026 and June 30, 2026, respectively, and $8.7 million\nfor three months ended September 30, 2025. The modest increase in interest\nexpense from the quarter ended June 30, 2026 compared to the quarter ended\nSeptember 30, 2026 was primarily attributable to higher interest expense on\ndeposits. Compared to the quarter ended September 30, 2025, interest expense\ndecreased $1.1 million, driven by a $651 thousand reduction in deposit\ninterest expense and a $494 thousand decrease in interest expense on Federal\nHome Loan Bank (\"FHLB\") advances. The decrease in deposit interest expense\nresulted from a $10.3 million decline in average interest-bearing deposit\nbalances and a 20 basis point reduction in the average rate paid on those\ndeposits, primarily due to the runoff of higher-cost time deposits.\nAdditionally, the average balance of FHLB advances during the quarter ended\nSeptember 30, 2026 declined by $40.0 million compared to the quarter ended\nSeptember 30, 2025, reflecting the payoff of outstanding advances.\n\nNet Interest Income\n\nNet interest income for the quarter ended September 30, 2026 was $17.6\nmillion reflecting an increase of $659 thousand or 3.9% from the quarter ended\nJune 30, 2026 and an increase of $430 thousand or 2.5% from the quarter ended\nSeptember 30, 2025. Net interest income was $17.0 million and $17.2 million,\nrespectively, for the quarters ended June 30, 2026 and September 30, 2025.\n\nNet interest margin was 3.95% for the quarter ended September 30, 2026,\ncompared to 3.86% for the quarter ended June 30, 2026 and 3.58% for the\nquarter ended September 30, 2025. The increase in net interest margin compared\nto both the prior quarter and prior-year quarter was primarily attributable to\nhigher average yields on loans, as discussed above under Interest Income.\nAdditionally, the increase compared to the quarter ended September 30, 2025\nbenefited from the payoff of FHLB advances during the first quarter of 2026,\nwhich eliminated related interest expense in the current quarter, and the\nrunoff of higher-cost non-core deposits, which reduced overall funding costs.\nThe net interest spread increased to 3.09% for the quarter ended\nSeptember 30, 2026, compared to 3.01% for the quarter ended June 30, 2026 and\n2.57% for the quarter ended September 30, 2025.\n\nThe Company's net interest margin is not a measurement under accounting\nprinciples generally accepted in the United States, but it is a common measure\nused by the financial services industry to determine how profitable earning\nassets are funded. The Company's net interest margin is calculated by dividing\ntax equivalent net interest income by total average earning assets. Tax\nequivalent net interest income is calculated by grossing up interest income\nfor the amounts that are non-taxable (i.e., municipal income) then subtracting\ninterest expense. The tax rate utilized is 21%. This is a non-GAAP financial\nmeasure. Please refer to the \"Reconciliation of Tax-Equivalent Net Interest\nIncome\" table for additional information.\n\nNoninterest Income and Expense\n\nTotal noninterest income was $5.3 million and $8.6 million for the quarters\nended September 30, 2026 and June 30, 2026 respectively. Total noninterest\nincome was $5.2 million for the quarter ended September 30, 2025.\n                                                 For The Three Months Ended\n (Dollars in thousands)                          9/30/2026             6/30/2026             $                      %                9/30/2025         $                    %\n                                                                                             Change                 Change                             Change               Change\n Noninterest Income\n Wealth management fees                          $      1,744          $      2,197          $     (453)                  -20.6  %   $      1,827      $     (83)                 -4.5   %\n Service charges on deposit accounts                    606                   563                  43                     7.6    %          558              48                   8.6    %\n Other service charges and fees                         1,096                 1,028                68                     6.6    %          1,151            (55)                 -4.8   %\n Gain (loss) on the sale and disposal of bank           7                     (4)                  11               NM                      (2)              9              NM\n premises and equipment\n Gain on sale of loans held for sale                    1,255                 646                  609                    94.3   %          1,012            243                  24.0   %\n Gain on sale of other assets                           —                     3,486                (3,486)          NM                      —                —              NM\n Small business investment company income               213                   110                  103                    93.6   %          58               155                  267.2  %\n Bank owned life insurance income                       280                   289                  (9)                    -3.1   %          268              12                   4.5    %\n Other operating income                                 95                    275                  (180)                  -65.5  %          293              (198)                -67.6  %\n Total noninterest income                        $      5,296          $      8,590          $     (3,294)                -38.3  %   $      5,165      $     131                  2.5    %\n\nTotal noninterest income decreased in the third quarter of 2026 compared to\nthe second quarter of 2026, primarily due to a gain on the sale of other\nassets recognized in the second quarter of 2026. During the second quarter,\nthe Company sold its membership interest in Bearing to an unaffiliated third\nparty and recognized a pre-tax gain of $3.5 million, which was recorded in\ngain on sale of other assets.\n\nNoninterest income, as adjusted to exclude the one-time effect of the gain on\nthe sale, was $5.1 million for the quarter ended June 30, 2026. This adjusted\namount is a non-GAAP financial measure. See the \"Reconciliation of GAAP to\nNon-GAAP Performance Highlights\" table for additional information.\n\nCompared to both the second quarter of 2026 and the third quarter of 2025,\nadjusted noninterest income increased primarily due to higher gains on the\nsale of loans held for sale. The increase was driven by higher sales volume\nwithin the Small Business Administration (\"SBA\") loan portfolio. Partially\noffsetting this increase was lower wealth management fee income, as both the\nsecond quarter of 2026 and the third quarter of 2025 benefited from elevated\ntransaction-based revenues related to estates and other client services.\n\nNoninterest expense increased $596 thousand, or 3.8%, to $16.1 million for the\nquarter ended September 30, 2026 from $15.5 million for the quarter ended\nJune 30, 2026 and increased $1.8 million or 12.4% compared to the quarter\nended September 30, 2025.\n                                       For The Three Months Ended\n (Dollars in thousands)                9/30/2026              6/30/2026              $                    %                9/30/2025          $                    %\n                                                                                     Change               Change                              Change               Change\n Noninterest Expenses\n Salaries and employee benefits        $      9,627           $      9,212           $     415                  4.5    %   $      8,717       $     910                  10.4   %\n Occupancy expenses                           696                    613                   83                   13.5   %          691               5                    0.7    %\n Equipment expenses                           495                    451                   44                   9.8    %          437               58                   13.3   %\n Advertising and marketing expenses           264                    295                   (31)                 -10.5  %          317               (53)                 -16.7  %\n Stationery and supplies                      39                     30                    9                    30.0   %          37                2                    5.4    %\n ATM network fees                             330                    326                   4                    1.2    %          327               3                    0.9    %\n Loss on sale of repossessed assets           15                     —                     15             NM                      —                 15             NM\n FDIC assessment                              200                    169                   31                   18.3   %          172               28                   16.3   %\n Computer software expense                    432                    422                   10                   2.4    %          389               43                   11.1   %\n Bank franchise tax                           530                    530                   —                    0.0    %          388               142                  36.6   %\n Professional fees                            716                    551                   165                  29.9   %          493               223                  45.2   %\n Data processing fees                         553                    591                   (38)                 -6.4   %          469               84                   17.9   %\n Merger-related expenses                      342                    —                     342            NM                      —                 342            NM\n Other operating expenses                     1,888                  2,341                 (453)                -19.4  %          1,907             (19)                 -1.0   %\n Total noninterest expenses            $      16,127          $      15,531          $     596                  3.8    %   $      14,344      $     1,783                12.4   %\n\nAs previously announced, the Company entered into a definitive merger\nagreement with John Marshall during the third quarter of 2026. Merger-related\nexpenses of $342 thousand were recognized during the quarter in connection\nwith the proposed transaction. No merger-related expenses were incurred during\neither the second quarter of 2026 or the third quarter of 2025. Excluding\nthese merger-related expenses, noninterest expense totaled $15.8 million\nduring the third quarter of 2026.\n\nTotal noninterest expense increased in the third quarter of 2026 compared to\nthe second quarter of 2026, primarily due to higher salaries and benefits\nexpense. The increase was largely attributable to higher commission expense\nassociated with increased loan sale volume, higher incentive compensation\naccruals as performance metrics reached payout thresholds during the quarter,\nand increased loan production incentive accruals resulting from loan growth.\n\nTotal noninterest expense increased in the third quarter of 2026 compared to\nthe third quarter of 2025, primarily due to higher salaries and employee\nbenefits expense. In addition to the higher incentive compensation accruals\ndiscussed above, salaries and employee benefits expense increased as a result\nof growth in the Company's workforce, with full-time equivalent (\"FTE\")\nemployees increasing from 249 to 262 during the period. Additionally, annual\nmerit increases and compensation adjustments implemented at the end of the\nfirst quarter of 2026 contributed to higher personnel costs during the\nquarter.\n\nAsset Quality and Provision for Credit Losses\n                                                              As of\n (dollars in thousands)                                       September 30,             June 30, 2026             September 30,\n                                                              2026                                                2025\n\n Nonaccrual loans                                             $         15,641          $         16,146          $         13,167\n Loans past due 90 days or more and accruing interest                   104                       20                        91\n Other real estate owned and repossessed assets                         250                       302                       1,009\n Total nonperforming assets                                   $         15,995          $         16,468          $         14,267\n\n Allowance for credit losses on loans                         $         18,533          $         18,306          $         14,810\n\n Allowance for credit losses on loans to total gross loans              1.21      %               1.22      %               1.01      %\n\n Non-performing assets to total assets                                  0.86      %               0.89      %               0.74      %\n\nNonperforming assets consist of nonaccrual loans, loans 90 days or more past\ndue and still accruing, other real estate owned (foreclosed properties), and\nrepossessed assets. Nonperforming assets decreased by $473 thousand between\nJune 30, 2026 and September 30, 2026. This decrease was due to the $507\nthousand partial write-down to an existing commercial and industrial\nsyndicated relationship. This partial write-down was due to the restructuring\nof this loan relationship by the lead bank. Nonperforming assets increased\n$1.7 million or 12.1% as of September 30, 2026 in comparison to\nSeptember 30, 2025 mainly due to several large relationships in excess of $1\nmillion being placed in nonaccrual status during the period. The increase in\nnonaccrual loans is partially offset by a decrease of $759 thousand in\nrepossessed assets. All repossessed assets held at September 30, 2025 were\nsold prior to September 30, 2026, contributing to the decline in repossessed\nassets, although this decrease was partially offset by the addition of a new\nrepossessed asset during the second quarter of 2026.\n\nThe majority of all nonaccrual loans are secured by real estate and management\nevaluates the financial condition of these borrowers and the value of any\ncollateral on these loans. The results of these evaluations are used to\nestimate the amount of losses which may be realized on the disposition of\nthese nonaccrual loans. Specific reserves on nonaccrual loans totaled $3.4\nmillion, $3.1 million, and $333 thousand at September 30, 2026, June 30,\n2026, and September 30, 2025, respectively. The increase from June 30, 2026\nwas primarily attributable to an additional $708 thousand specific reserve\nallocation on an existing nonaccrual multifamily relationship, reflecting\nupdated collateral valuations based on signed letters of intent received for\ntwo properties securing the credit, as well as a specific reserve allocation\non one marine loan. Compared to September 30, 2025, the increase in specific\nreserves was driven by new specific reserves on an existing nonaccrual\nmultifamily relationship as well as specific reserve allocations established\non two SBA loans.\n\nNet charge-offs totaled $1.0 million for the quarter ended September 30,\n2026, compared to $2.2 million for the linked quarter and $2.3 million for the\nthird quarter of 2025. Charge-offs recognized during the third quarter of 2026\nwere distributed across several loan portfolios, with the majority occurring\nwithin the commercial and industrial and construction and farmland portfolios.\nIn the second quarter of 2026, net charge-offs were primarily driven by a $1.6\nmillion partial charge-off of a single multifamily relationship to reflect the\nfair value of the underlying collateral, net of estimated selling costs, while\nthe remaining charge-offs were attributable to five smaller relationships. Net\ncharge-offs during the third quarter of 2025 were primarily attributable to\nthe write-off of a $1.1 million deficiency balance loan and a $468 thousand\nwrite-down on a nonaccrual commercial real estate loan. The decline in net\ncharge-offs compared to both prior periods reflects the absence of similarly\nsignificant relationship-specific charge-offs, while continuing to demonstrate\nthe Company's proactive approach to identifying and addressing credit\ndeterioration and maintaining appropriate collateral-based valuations within\nthe loan portfolio.\n\nThe allowance for credit losses as a percentage of total loans was 1.21% at\nSeptember 30, 2026, compared to 1.22% at June 30, 2026 and 1.01% at\nSeptember 30, 2025. The slight decrease from the linked quarter primarily\nreflected lower qualitative factor adjustments in certain portfolios, most\nnotably construction and farmland and home equity lines of credit, partially\noffset by higher qualitative factor adjustments within the commercial and\nindustrial portfolio associated with loan growth and credit quality trends.\nCompared to September 30, 2025, the higher allowance ratio was primarily\ndriven by changes in historical loss factors, particularly within the marine\nand non-owner-occupied commercial real estate portfolios, as well as elevated\nqualitative factor adjustments in certain portfolios, including commercial and\nindustrial and construction and farmland loans, reflecting loan growth and\ncredit quality trends. There were also increased specific reserves during this\nperiod. The Company's allowance for credit losses continues to reflect\nmanagement's assessment of the credit risk inherent in the loan portfolio and\nits commitment to maintaining appropriate reserve coverage.\n\nThe provision for credit losses on loans reflects management's ongoing\nassessment of the adequacy of the allowance for credit losses and the credit\nrisk inherent in the loan portfolio. The Company recorded a provision for\ncredit losses on loans of $1.3 million for the quarter ended September 30,\n2026, compared to $3.2 million for the quarter ended June 30, 2026 and $1.1\nmillion for the quarter ended September 30, 2025. The decrease from the linked\nquarter was primarily driven by lower reserve requirements resulting from\nchanges in qualitative factor adjustments and lower levels of net charge-offs.\nIncreases in specific reserves partially offset this decline. Compared to the\nthird quarter of 2025, the provision increased modestly, reflecting loan\nportfolio growth, higher specific reserves, and changes in qualitative factors\nwithin certain loan portfolios. The provision reflects management's\ndisciplined approach to reserve methodology and its commitment to maintaining\na strong allowance for credit losses that appropriately reflects portfolio\ngrowth, current economic conditions, and identified credit risks.\n\nManagement's judgment in determining the level of the allowance is based on\nevaluations of the collectability of loans while taking into consideration\nsuch factors as trends in delinquencies and charge-offs, changes in the nature\nand volume of the loan portfolio, current economic conditions that may affect\na borrower's ability to repay and the value of collateral, overall portfolio\nquality and review of specific potential losses. The Company is committed to\nmaintaining an allowance at a level that adequately reflects expected credit\nlosses over the life of the loan portfolio.\n\nBalance Sheet\n\nTotal consolidated assets were $1.87 billion at September 30, 2026, an\nincrease of $23.1 million, or 1.3%, from $1.85 billion at June 30, 2026.\nCompared to September 30, 2025, total consolidated assets decreased from\n$1.93 billion. The linked-quarter increase was driven primarily by growth in\nthe loan portfolio, reflecting continued customer demand. The year-over-year\ndecrease in total assets was primarily attributable to the runoff of non-core\ndeposits, which contributed to a decline in cash and cash equivalents. This\ndecrease was partially offset by net loan growth of $68.3 million. Despite the\ndecline in total assets from the prior-year period, the Company maintained a\nstrong balance sheet while continuing to strategically deploy capital into\nhigher-yielding earning assets.\n\nTotal net loans increased $32.4 million, or 2.2%, to $1.51 billion at\nSeptember 30, 2026 from $1.48 billion at June 30, 2026, driven by growth\nacross several key lending categories, including commercial real estate,\nresidential real estate and commercial and industrial loans. Compared to\nSeptember 30, 2025, total net loans increased $68.3 million, or 4.7%, from\n$1.45 billion, reflecting continued success in generating new lending\nopportunities and serving the credit needs of the Company's markets.\nYear-over-year growth was concentrated in the same core lending segments that\ncontributed to the linked-quarter increase, demonstrating the strength and\nconsistency of the Company's loan production efforts.\n\nTotal deposits were $1.62 billion at September 30, 2026, an increase of $21.3\nmillion, or 1.3%, from June 30, 2026. Total deposits were $1.66 billion at\nSeptember 30, 2025. The linked-quarter increase reflects the increase in\nbrokered certificates of deposit of $15.8 million in addition to the continued\nstability of the Company's deposit base. The year-over-year decrease was\nprimarily attributable to the temporary nature of unusually large\nnoninterest-bearing deposit balances received during the second quarter of\n2025. Specifically, noninterest-bearing deposits increased by approximately\n$151.7 million during second quarter of 2025, largely due to business sale\nproceeds from two customers. As anticipated, the majority of these funds had\nexited the Bank by the end of 2025. Excluding the impact of these temporary\nbalances, the Company's deposit base has remained relatively stable and\ncontinues to provide a solid source of funding for loan growth and other\nbalance sheet initiatives.\n\nCore deposit change for the quarter and twelve months ended September 30,\n2026 was an increase of  $1.4 million and an increase of $21.7 million,\nrespectively. Core deposits consist of checking accounts, NOW accounts, money\nmarket accounts, regular savings accounts and time deposits less than $250\nthousand.\n\nLiquidity\n\n The objective of the Company's liquidity management is to ensure the\ncontinuous availability of funds to satisfy the credit needs of our customers\nand the demands of our depositors, creditors and investors. Uninsured deposits\nrepresent an estimate of amounts above the Federal Deposit Insurance\nCorporation (\"FDIC\") insurance coverage limit of $250,000. As of\nSeptember 30, 2026, the Company's uninsured deposits were approximately\n$226.0 million or 13.9% of total deposits.\n\nThe Company's liquid assets, which include cash and due from banks,\ninterest-bearing deposits at other banks, loans with a maturity less than one\nyear and nonpledged securities available for sale, were $421.8 million and\nborrowing availability was $484.1 million as of September 30, 2026, which in\ntotal exceeded uninsured deposits, excluding intercompany cash holdings and\nsecured municipal deposits, by $679.9 million. Liquid assets increased by\n$76.6 million during the third quarter of 2026 due mainly to loan growth. In\naddition to deposits, the Company utilizes short-term and long-term borrowings\nas sources of funds. Short-term borrowings from the Federal Reserve Bank and\nthe FHLB as well as federal funds purchased from Community Bankers Bank may be\nused to fund the Company's day-to-day operations. Long-term borrowings include\nFHLB advances as well as subordinated debt. Total outstanding borrowings\ndecreased to $29.6 million at September 30, 2026 from $69.6 million at\nSeptember 30, 2025. The decrease was primarily due to the paydown of\noutstanding FHLB advances. Borrowings remained stable from June 30, 2026 to\nSeptember 30, 2026.\n\nAdditional sources of liquidity available to the Company include cash flows\nfrom operations, loan payments and payoffs, deposit growth, maturities, calls\nand sales of securities and the issuance of brokered certificates of\ndeposit.\n\nCapital and Dividends\n\nOn October 21, 2026, the Board of Directors announced a quarterly common stock\ncash dividend of $0.31 per common share, payable on November 13, 2026, to\nshareholders of record on November 2, 2026. The Board of Directors of the\nCompany regularly reviews the amount of cash dividends per share and the\nresulting dividend payout ratio in light of changes in economic conditions,\ncurrent and future capital requirements, and expected future earnings.\n\nTotal consolidated equity increased $9.7 million to $195.3 million at\nSeptember 30, 2026 compared to September 30, 2025 and increased $1.4 million\ncompared to June 30, 2026. The increases are primarily due to increased\nretained earnings from net income.\n\nThe Company's securities available for sale are fixed income debt securities\nand their unrealized loss position is a result of increased market interest\nrates since they were purchased. The Company expects to recover its\ninvestments in debt securities through scheduled payments of principal and\ninterest. The accumulated other comprehensive loss related to the Company's\nsecurities available for sale increased to $8.2 million at September 30, 2026\ncompared to $6.1 million at June 30, 2026 and $5.6 million at September 30,\n2025.\n\nAs of September 30, 2026, the most recent notification from the FDIC\ncategorized the Bank as well capitalized under the regulatory framework for\nprompt corrective action. To be categorized as well capitalized under\nregulations applicable at September 30, 2026, Bank was required to maintain\nminimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1\nleverage ratios. In addition to the regulatory risk-based capital\nrequirements, Bank must maintain a capital conservation buffer of additional\ncapital of 2.5 percent of risk-weighted assets as required by the Basel III\ncapital rules.  The Bank exceeded these ratios at September 30, 2026.\n\nExplanation of Non-GAAP Financial Measures\n\nThis release contains financial information determined by methods other than\nin accordance with GAAP. Management believes that the supplemental Non-GAAP\ninformation provides a better comparison of period-to-period operating\nperformance and the impact of merger-related expenses and non-recurring\ntransactions, such as the gain on sale of Bearing, on the Company's results.\nAdditionally, the Company believes this information is utilized by regulators\nand market analysts to evaluate a company's results and financial condition\nand therefore, such information is useful to investors. These disclosures\nshould not be viewed as a substitute for or more important than financial\nresults in accordance with GAAP, nor are they necessarily comparable to\nnon-GAAP performance measures which may be presented by other companies.\n\nCautionary Note Regarding Forward-Looking Statements\n\nCertain information contained in this communication may include\n\"forward-looking statements\" within the meaning of Section 27A of the\nSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange\nAct of 1934, as amended. Forward-looking statements are statements that\ninclude, without limitation, statements made in Mr. Lorey's quotations,\nstatements regarding the Company's pending merger with John Marshall (the\n\"proposed merger\") and expectations with regard to the benefits of the\nproposed merger, statements regarding the Company's business, financial and\noperating results including the Company's deposit base and funding, the impact\nof future economic conditions, changes in economic conditions, management's\nbeliefs regarding the Company's liquidity, capital resources, asset quality,\nloan portfolio, and statements that include other projections, predictions,\nexpectations or beliefs about future events or results or otherwise are not\nstatements of historical fact. Such forward-looking statements are based on\ncertain assumptions as of the time they are made, and are inherently subject\nto known and unknown risks, uncertainties and other factors some of which\ncannot be predicted or quantified, that may cause actual results, performance\nor achievements to be materially different from those expressed or implied by\nsuch forward-looking statements. Forward-looking statements are often\ncharacterized by the use of qualified words (and their derivatives) such as\n\"expect,\" \"believe,\" \"estimate,\" \"plan,\" \"project,\" \"anticipate,\" \"intend,\"\n\"will,\" \"may,\" \"view,\" \"opportunity,\" \"seek to,\" \"potential,\" \"continue,\"\n\"confidence,\" or words of similar meaning or other statements concerning\nopinions or judgments of the Company and its management about future events.\nAlthough the Company believes that its expectations with respect to the\nforward-looking statements are based upon reliable assumptions within the\nbounds of its knowledge of its business and operations, there can be no\nassurance that actual results, performance or achievements of the Company will\nnot differ materially from any future results, performance or achievements\nexpressed or implied by such forward-looking statements.  Forward-looking\nstatements speak only as of the date of this release.  The Company undertakes\nno obligation to update or revise any forward-looking statement, except as\nrequired by law.\n\nBecause forward-looking statements are subject to assumptions and\nuncertainties, actual results or future events could differ, possibly\nmaterially, from those indicated in or implied by such forward-looking\nstatements as a result of a variety of factors, many of which are beyond the\nCompany's control. Caution should be exercised against placing undue reliance\non forward-looking statements. Factors which could cause actual results to\ndiffer materially include, but are not limited to, the following: the\noccurrence of any event, change or other circumstances that could give rise to\nthe right of John Marshall or the Company to terminate the definitive merger\nagreement; the outcome of any legal proceedings or governmental inquiries or\nactions that may be instituted against John Marshall, the Company or the\ncombined company; the possibility that the proposed merger will not close when\nexpected or at all because required regulatory, shareholder or other approvals\nor consents are not received or other conditions to the closing are not\nsatisfied on a timely basis or at all, or are obtained subject to conditions\nthat are not anticipated (and the risk that required regulatory approvals may\nresult in the imposition of conditions that could adversely affect the\ncombined company or the expected benefits of the proposed merger); the ability\nof John Marshall and the Company to meet expectations regarding the timing,\ncompletion and accounting and tax treatments of the proposed merger; any\nchanges of, including the risk that any announcements relating to the proposed\nmerger could have adverse effects on, the market price of the common stock of\nJohn Marshall or the Company; the possibility that the anticipated benefits or\nsynergies of the proposed merger will not be realized when expected or at all,\nincluding as a result of the impact of, or problems arising from, the\nintegration of the two companies or as a result of the strength of the economy\nand competitive factors in the areas where John Marshall and the Company do\nbusiness, and such integration may be more difficult, time-consuming or costly\nthan expected and may result in unexpected liabilities or operational\ndisruptions; certain restrictions during the pendency of the proposed merger\nthat may impact the Company's ability to pursue certain business opportunities\nor strategic transactions; the possibility that the proposed merger may be\nmore expensive to complete than anticipated, including as a result of\nunexpected factors or events; diversion of the Company's management from\nongoing business operations and opportunities; revenues following the proposed\nmerger may be lower than expected; the ability of John Marshall, the Company\nor the combined company to retain or hire key employees or to maintain\nrelationships with customers, suppliers or other business partners, in\nconnection with the announcement, pendency or completion of the proposed\nmerger; changes in interest rates and general economic, political and market\nconditions, including inflation and recession; the legislative and regulatory\nclimate and changes in laws or government regulations or policies affecting\nfinancial institutions; monetary and fiscal policies of the U.S. Government,\nincluding policies of the U.S. Treasury and Federal Reserve; the quality or\ncomposition of the Company's loan or investment portfolios; the Company's\nability to successfully resolve non-performing assets; demand for loan\nproducts; liquidity and deposit flows; competition; demand for financial\nservices in the Company's market area; the Company's ability to keep pace with\nnew technologies; a failure in or breach of the Company's operational or\nsecurity systems or infrastructure, or those of third-party vendors or other\nservice providers, including as a result of cyberattacks; the Company's\ncapital and liquidity; changes in tax and accounting rules, principles,\npolicies and guidelines; and other factors included in the Company's Annual\nReport on Form 10-K for the year ended December 31, 2025 and other filings\nwith the Securities and Exchange Commission (the \"SEC\").\n\nAdditional Information About the Proposed Merger and Where to Find It\n\nIn connection with the proposed merger of John Marshall and the Company, John\nMarshall filed with the SEC a registration statement on Form S-4 (File No.\n333-299276) on October 2, 2026, as amended (the \"Registration Statement\"),\nwhich includes the joint proxy statement of John Marshall and the Company that\nalso constitutes a prospectus of John Marshall (the \"Definitive Joint Proxy\nStatement/Prospectus\"). The Registration Statement was declared effective on\nOctober 16, 2026, and each of John Marshall and the Company commenced mailing\nof the Definitive Joint Proxy Statement/Prospectus to their respective\nshareholders on or about October 16, 2026. Each of John Marshall and the\nCompany may file with the SEC other relevant documents concerning the proposed\nmerger.\n\nINVESTORS AND SHAREHOLDERS OF JOHN MARSHALL AND THE COMPANY AND THEIR\nRESPECTIVE AFFILIATES ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE\nREGISTRATION STATEMENT, THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, AND\nANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION\nWITH THE PROPOSED MERGER, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE\nDOCUMENTS, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT\nJOHN MARSHALL, THE COMPANY AND THE PROPOSED MERGER.\n\nInvestors and shareholders are able to obtain a free copy of the Registration\nStatement, the Definitive Joint Proxy Statement/Prospectus, and other relevant\ndocuments filed with the SEC containing information about John Marshall and\nthe Company, without charge, at the SEC's website, www.sec.gov\n(http://www.sec.gov) . Copies of documents filed with the SEC by John Marshall\nwill be made available free of charge in the \"Investor Relations\" section of\nJohn Marshall's website, investor.johnmarshallbank.com, or can be obtained by\nrequesting by mail at John Marshall Bancorp, Inc., 1943 Isaac Newton Square\nEast, Suite 100, Reston, Virginia 20190, Attention: Corporate Secretary.\nCopies of documents filed with the SEC by the Company will be made available\nfree of charge in the \"Investor Relations\" section of the Company's website,\ninvestors.bankofclarke.bank, or can be obtained by requesting by mail at Eagle\nFinancial Services, Inc., 2 East Main St, P.O. Box 391, Berryville, Virginia\n22611, Attention: Secretary. The information on John Marshall's or the\nCompany's respective websites is not, and shall not be deemed to be, a part of\nthis communication or incorporated into other filings either company makes\nwith the SEC.\n\nParticipants in the Solicitation\n\nJohn Marshall, the Company and certain of their respective directors and\nexecutive officers may be deemed to be participants in the solicitation of\nproxies from shareholders of John Marshall and shareholders of the Company in\nrespect of the proposed merger under the rules of the SEC. Information\nregarding John Marshall's directors and executive officers is available in its\ndefinitive proxy statement for its 2026 annual meeting of shareholders, which\nwas filed with the SEC on April 29, 2026, and certain other documents filed by\nJohn Marshall with the SEC. Information regarding the Company's directors and\nexecutive officers is available in its definitive proxy statement for its 2026\nannual meeting of shareholders, which was filed with the SEC on April 8, 2026,\nand certain other documents filed by the Company with the SEC. Other\ninformation regarding the participants in the solicitation of proxies in\nrespect of the proposed merger and a description of their direct and indirect\ninterests, by security holdings or otherwise, is and will be contained in the\nDefinitive Joint Proxy Statement/Prospectus related to the proposed merger and\nother relevant materials filed with the SEC by John Marshall and the Company,\nrespectively. Free copies of these documents may be obtained as described in\nthe preceding section.\n\nNo Offer or Solicitation\n\nThis communication does not constitute an offer to sell or the solicitation of\nan offer to buy any securities or a solicitation of any vote or approval with\nrespect to the proposed merger, nor shall there be any sale of securities in\nany jurisdiction in which such offer, solicitation or sale would be unlawful\nprior to registration or qualification under the securities laws of any such\njurisdiction. No offer of securities shall be made except by means of a\nprospectus meeting the requirements of Section 10 of the Securities Act of\n1933, as amended.\n EAGLE FINANCIAL SERVICES, INC.\n KEY STATISTICS (unaudited)\n                                                              For the Three Months Ended\n (Dollars in thousands, except per share data)                3Q26                2Q26                1Q26                4Q25                3Q25\n Net income                                                   $    4,750          $    4,981          $    3,740          $    4,334          $    5,584\n Earnings per share, basic                                    $    0.88           $    0.92           $    0.69           $    0.81           $    1.04\n Earnings per share, diluted                                  $    0.88           $    0.92           $    0.69           $    0.81           $    1.04\n Return on average total assets (annualized)                       1.01   %            1.08   %            0.81   %            0.91   %            1.10   %\n Return on average total equity (annualized)                       9.66   %            10.35  %            7.98   %            9.18   %            12.20  %\n Dividend payout ratio                                             35.23  %            33.70  %            44.93  %            38.27  %            29.81  %\n Fee revenue as a percent of total revenue( (1))                   15.03  %            14.82  %            15.64  %            17.86  %            15.81  %\n Net interest margin (annualized)( (2))                            3.95   %            3.86   %            3.63   %            3.61   %            3.58   %\n Yield on average earning assets (annualized)                      5.64   %            5.54   %            5.44   %            5.45   %            5.39   %\n Rate on average interest-bearing liabilities (annualized)         2.55   %            2.53   %            2.64   %            2.71   %            2.82   %\n Net interest spread                                               3.09   %            3.01   %            2.8    %            2.74   %            2.57   %\n Tax equivalent adjustment to net interest income             $    17             $    18             $    20             $    26             $    25\n Non-interest income to average assets                             1.13   %            1.86   %            1.07   %            1.12   %            1.02   %\n Non-interest expense to average assets                            3.44   %            3.37   %            3.09   %            3.24   %            2.83   %\n Efficiency ratio((3))                                             68.76  %            70.29  %            67.97  %            70.39  %            64.06  %\n\n (1) Fee revenue as a percentage of total revenue is calculated by dividing the\n sum of wealth management fees, service charges on deposit accounts and other\n service charges and fees by the sum of net interest income and non-interest\n income.\n\n (2) Non-GAAP financial measure - The annualized net interest margin is\n calculated by dividing tax equivalent net interest income by total average\n earning assets. Tax equivalent interest income is calculated by grossing up\n interest income for the amounts that are non-taxable (i.e., municipal income)\n then subtracting interest expense. The rate utilized is 21%.  Please refer to\n the \"Reconciliation of Tax-Equivalent Net Interest Income\" table for the\n quarterly tax equivalent net interest income and the reconciliation of net\n interest income to tax equivalent net interest income. The Company's net\n interest margin is a common measure used by the financial services industry to\n determine how profitable earning assets are funded. Because the Company earns\n a fair amount of nontaxable interest income due to tax-exempt loan balances,\n net interest income for the ratio is calculated on a tax equivalent basis as\n described above.\n\n (3) Non-GAAP financial measure - The efficiency ratio is not a measurement\n under accounting principles generally accepted in the United States. It is\n calculated by dividing non-interest expense less merger-related expenses,\n gain/loss on other real estate owned and gain/loss on repossessed assets by\n the sum of tax equivalent net interest income and non-interest income\n excluding gains and losses on the investment portfolio, loss on sale of other\n bank premises and equipment and gain on sale of other assets. The tax rate\n utilized is 21%. The Company calculates this ratio in order to evaluate its\n overhead structure or how effectively it is operating. An increase in the\n ratio from period to period indicates the Company is losing a larger\n percentage of its income to expenses. The Company believes that the efficiency\n ratio is a reasonable measure of profitability. Please refer to the\n \"Reconciliation of Efficiency Ratio\" table for additional information.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n SELECTED FINANCIAL DATA BY QUARTER (unaudited)\n (Dollars in thousands, except per share data)           3Q26                 2Q26                 1Q26                 4Q25                 3Q25\n BALANCE SHEET RATIOS\n Loans to deposits                                            94.38      %         93.60      %         91.28      %         91.65      %         88.21      %\n Average interest-earning assets to average-interest          150.46     %         150.25     %         146.04     %         147.54     %         155.33     %\n bearing liabilities\n PER SHARE DATA\n Dividends                                               $    0.31            $    0.31            $    0.31            $    0.31            $    0.31\n Book value                                                   36.08                35.83                35.16                35.14                34.52\n Tangible book value                                          36.08                35.83                35.16                35.14                34.52\n SHARE PRICE DATA\n Closing price                                           $    45.30           $    41.46           $    34.98           $    39.80           $    37.83\n Diluted earnings multiple((1))                               12.87                11.27                12.67                12.28                9.09\n Book value multiple((2))                                     1.26                 1.16                 0.99                 1.13                 1.10\n COMMON STOCK DATA\n Outstanding shares at end of period                          5,413,262            5,411,615            5,412,376            5,374,205            5,376,346\n Weighted average shares outstanding                          5,411,632            5,412,016            5,412,021            5,376,088            5,376,346\n Weighted average shares outstanding, diluted                 5,411,632            5,412,016            5,412,021            5,376,088            5,376,346\n CREDIT QUALITY\n Net charge-offs (recoveries) to average loans                0.07       %         0.15       %         (0.00)     %         0.02       %         0.16       %\n (annualized)\n Total non-performing loans to total loans ((3))              1.03       %         1.08       %         1.01       %         0.98       %         0.91       %\n Total non-performing assets to total assets( (4))            0.86       %         0.89       %         0.80       %         0.77       %         0.74       %\n Non-accrual loans to:\n Total loans                                                  1.02       %         1.08       %         1.01       %         0.98       %         0.90       %\n Total assets                                                 0.84       %         0.87       %         0.80       %         0.76       %         0.68       %\n Allowance for credit losses to:\n Total loans                                                  1.21       %         1.22       %         1.19       %         1.04       %         1.01       %\n Non-performing assets ((4))                                  115.87     %         111.16     %         117.67     %         104.98     %         103.81     %\n Non-accrual loans                                            118.49     %         113.38     %         117.78     %         106.40     %         112.48     %\n NON-PERFORMING ASSETS:\n Loans delinquent over 90 days and still accruing        $    104             $    20              $    13              $    60              $    91\n Non-accrual loans                                            15,641               16,146               14,711               14,398               13,167\n Other real estate owned and repossessed assets               250                  302                  —                    135                  1,009\n NET LOAN CHARGE-OFFS (RECOVERIES):\n Loans charged off                                       $    1,095           $    2,269           $    155             $    318             $    2,417\n (Recoveries)                                                 (61)                 (42)                 (189)                (81)                 (117)\n Net charge-offs (recoveries)                                 1,034                2,227                (34)                 237                  2,300\n PROVISION FOR CREDIT LOSSES ON                          $    1,261           $    3,207           $    1,972           $    747             $    1,131\n LOANS\n ALLOWANCE FOR CREDIT LOSSES ON                          $    18,533          $    18,306          $    17,326          $    15,320          $    14,810\n LOANS\n\n (1) The diluted earnings multiple (or price earnings ratio) is calculated by\n dividing the period-end closing market price per share by annualized diluted\n earnings per share for the quarter. The diluted earnings multiple is a measure\n of how much an investor may be willing to pay for $1.00 of the Company's\n earnings.\n\n (2) The book value multiple (or price to book ratio) is calculated by dividing\n the period's closing market price per share by the period's book value per\n share. The book value multiple is a measure used to compare the Company's\n market value per share to its book value per share.\n\n (3) Non-performing loans include non-accrual loans and loans 90 days or more\n past due and still accruing interest.\n\n (4) Non-performing assets include non-accrual loans, loans 90 days or more\n past due and still accruing interest, repossessed assets and other real estate\n owned (OREO) acquired through foreclosure.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n CONSOLIDATED BALANCE SHEETS\n                                                        As of:\n (Dollars in thousands)                                 Unaudited                  Unaudited                  Unaudited                  *                          Unaudited\n                                                        09/30/2026                 06/30/2026                 03/31/2026                 12/31/2025                 09/30/2025\n Assets\n Cash and due from banks                                $       15,020             $       18,281             $       14,500             $       13,942             $       15,558\n Interest-bearing deposits with other institutions              104,519                    71,169                     94,974                     103,984                    189,119\n Federal funds sold                                             42,752                     54,542                     80,293                     99,268                     63,452\n Securities available for sale, at fair value                   104,946                    114,341                    117,245                    123,329                    125,165\n Loans held for sale                                            623                        5,974                      5,214                      4,786                      3,479\n Loans, net of allowance for credit losses                      1,513,409                  1,481,045                  1,441,533                  1,457,757                  1,445,118\n Bank premises and equipment, net                               14,952                     14,974                     14,911                     14,906                     14,878\n Bank owned life insurance                                      32,573                     32,293                     32,004                     31,720                     31,440\n Other assets                                                   41,671                     54,746                     37,686                     38,934                     44,264\n Total assets                                           $       1,870,465          $       1,847,365          $       1,838,360          $       1,888,626          $       1,932,473\n Liabilities and Shareholders' Equity\n Liabilities\n Deposits:\n Noninterest bearing demand deposits                    $       453,481            $       463,086            $       455,107            $       432,171            $       521,149\n Savings and interest bearing demand deposits                   730,580                    720,714                    728,322                    728,545                    687,530\n Time deposits                                                  439,185                    418,135                    414,790                    446,644                    446,369\n Total deposits                                         $       1,623,246          $       1,601,935          $       1,598,219          $       1,607,360          $       1,655,048\n Federal funds purchased                                        —                          11                         —                          —                          101\n Federal Home Loan Bank advances, long-term                     —                          —                          —                          40,000                     40,000\n Subordinated debt, net                                         29,630                     29,613                     29,596                     29,579                     29,562\n Other liabilities                                              22,302                     21,901                     20,219                     22,848                     22,181\n Total liabilities                                      $       1,675,178          $       1,653,460          $       1,648,034          $       1,699,787          $       1,746,892\n\n Commitments and contingent liabilities\n\n Shareholders' Equity\n Preferred stock, $10 par value                                 —                          —                          —                          —                          —\n Common stock, $2.50 par value                                  13,316                     13,311                     13,311                     13,264                     13,260\n Surplus                                                        65,654                     65,189                     64,802                     64,720                     64,458\n Retained earnings                                              124,551                    121,481                    118,178                    116,115                    113,448\n Accumulated other comprehensive (loss)                         (8,234)                    (6,076)                    (5,965)                    (5,260)                    (5,585)\n Total shareholders' equity                             $       195,287            $       193,905            $       190,326            $       188,839            $       185,581\n Total liabilities and shareholders' equity             $       1,870,465          $       1,847,365          $       1,838,360          $       1,888,626          $       1,932,473\n\n * Derived from audited consolidated financial statements.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n LOAN DATA (unaudited)\n                                                   As of:\n (Dollars in thousands)                            9/30/2026                 6/30/2026                 3/31/2026                 12/31/2025                 9/30/2025\n Mortgage real estate loans:\n    Construction & Secured by Farmland             $      96,150             $      95,454             $      82,594             $       82,336             $      84,467\n    HELOCs                                                60,024                    59,973                    58,784                     58,640                    54,549\n    Residential First Lien - Investment                   104,664                   107,456                   107,084                    107,308                   103,942\n    Residential First Lien - Owner Occupied               194,889                   177,739                   176,378                    178,806                   178,725\n    Residential Junior Liens                              10,553                    10,117                    10,775                     10,724                    10,497\n    Commercial - Owner Occupied                           355,269                   329,817                   313,161                    298,853                   290,931\n    Commercial -  Non-Owner Occupied &                389,986                   397,617                   389,878                    398,926                   398,076\n     Multifamily\n Commercial and industrial loans:\n    BHG loans                                             1,432                     1,713                     2,118                      2,344                     2,637\n    SBA PPP loans                                         —                         —                         —                          4                         10\n    Other commercial and industrial loans                 123,857                   116,346                   99,170                     110,876                   100,777\n Marine loans                                             152,352                   159,246                   170,217                    175,639                   185,938\n Triad Loans                                              19,564                    20,291                    20,789                     21,324                    21,856\n Consumer loans                                           7,151                     7,761                     9,707                      7,418                     7,566\n Overdrafts                                               313                       463                       343                        318                       297\n Other loans                                              12,272                    11,540                    12,572                     13,946                    13,895\n Total loans                                       $      1,528,476          $      1,495,533          $      1,453,570          $       1,467,462          $      1,454,163\n Net deferred loan costs and premiums                     3,466                     3,818                     5,289                      5,615                     5,765\n Allowance for credit losses on loans                     (18,533)                  (18,306)                  (17,326)                   (15,320)                  (14,810)\n Net loans                                         $      1,513,409          $      1,481,045          $      1,441,533          $       1,457,757          $      1,445,118\n\n \n EAGLE FINANCIAL SERVICES, INC.\n CONSOLIDATED STATEMENTS OF INCOME (unaudited)\n                                                                        For The Three Months Ended\n (Dollars in thousands, except per share data)                          9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n Interest and Dividend Income\n Interest and fees on loans                                             $      22,745          $      21,744          $      20,713          $       21,268          $      20,722\n Interest on federal funds sold                                                88                     176                    109                     54                     55\n Interest and dividends on securities available for sale:\n Taxable interest income                                                       1,087                  1,188                  1,230                   1,274                  1,293\n Interest income exempt from federal income taxes                              —                      —                      —                       —                      —\n Dividends                                                                     11                     67                     76                      61                     60\n Interest on deposits in banks                                                 1,287                  1,200                  1,698                   2,098                  3,803\n Total interest and dividend income                                     $      25,218          $      24,375          $      23,826          $       24,755          $      25,933\n Interest Expense\n Interest on deposits                                                   $      7,235           $      7,050           $      7,225           $       7,526           $      7,886\n Interest on federal funds purchased                                           —                      —                      —                       —                      —\n Interest on Federal Home Loan Bank advances                                   —                      —                      344                     494                    494\n Interest on subordinated debt                                                 354                    355                    354                     354                    354\n Total interest expense                                                 $      7,589           $      7,405           $      7,923           $       8,374           $      8,734\n Net interest income                                                    $      17,629          $      16,970          $      15,903          $       16,381          $      17,199\n Provision For Credit Losses                                                   1,050                  3,503                  1,961                   688                    1,112\n Net interest income after provision for credit losses                  $      16,579          $      13,467          $      13,942          $       15,693          $      16,087\n Noninterest Income\n Wealth management fees                                                 $      1,744           $      2,197           $      1,782           $       2,299           $      1,827\n Service charges on deposit accounts                                           606                    563                    556                     574                    558\n Other service charges and fees                                                1,096                  1,028                  921                     1,009                  1,151\n Gain (loss) on the sale and disposal of bank premises and equipment           7                      (4)                    —                       (1)                    (2)\n (Loss) on the sale of AFS securities                                          —                      —                      —                       —                      —\n Gain on sale of loans held for sale                                           1,255                  646                    1,012                   830                    1,012\n Gain on sale of other assets                                                  —                      3,486                  —                       —                      —\n Small business investment company income                                      213                    110                    266                     40                     58\n Bank owned life insurance income                                              280                    289                    284                     280                    268\n Other operating income                                                        95                     275                    107                     324                    293\n Total noninterest income                                               $      5,296           $      8,590           $      4,928           $       5,355           $      5,165\n Noninterest Expenses\n Salaries and employee benefits                                         $      9,627           $      9,212           $      8,229           $       9,462           $      8,717\n Occupancy expenses                                                            696                    613                    666                     663                    691\n Equipment expenses                                                            495                    451                    462                     442                    437\n Advertising and marketing expenses                                            264                    295                    191                     209                    317\n Stationery and supplies                                                       39                     30                     46                      20                     37\n ATM network fees                                                              330                    326                    327                     324                    327\n Other real estate owned expense (gain), net                                   —                      —                      (5)                     20                     —\n Loss on the sale of other real estate owned                                   —                      —                      —                       51                     —\n Loss on sale of repossessed assets                                            15                     —                      39                      169                    —\n FDIC assessment                                                               200                    169                    227                     200                    172\n Computer software expense                                                     432                    422                    354                     373                    389\n Bank franchise tax                                                            530                    530                    481                     388                    388\n Professional fees                                                             716                    551                    604                     723                    493\n Data processing fees                                                          553                    591                    486                     558                    469\n Merger-related expenses                                                       342                    —                      —                       —                      —\n Other operating expenses                                                      1,888                  2,341                  2,105                   1,937                  1,907\n Total noninterest expenses                                             $      16,127          $      15,531          $      14,212          $       15,539          $      14,344\n Income before income taxes                                             $      5,748           $      6,526           $      4,658           $       5,509           $      6,908\n Income Tax Expense                                                            998                    1,545                  918                     1,175                  1,324\n Net income                                                             $      4,750           $      4,981           $      3,740           $       4,334           $      5,584\n Earnings Per Share\n Net income per common share, basic                                     $      0.88            $      0.92            $      0.69            $       0.81            $      1.04\n Net income per common share, diluted                                   $      0.88            $      0.92            $      0.69            $       0.81            $      1.04\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Average Balances, Income and Expenses, Yields and Rates (unaudited)\n                                               Three Months Ended\n                                               September 30, 2026                                                June 30, 2026                                                     September 30, 2025\n                                                                        Interest                                                          Interest                                                          Interest\n (Dollars in thousands)                        Average                  Income/                Average           Average                  Income/                Average           Average                  Income/                Average\n Assets:                                       Balance                  Expense                Rate              Balance                  Expense                Rate              Balance                  Expense                Rate\n Securities:\n Taxable                                       $     109,875            $      1,098                 3.96  %     $     116,041            $      1,255                 4.34  %     $     124,891            $      1,353                 4.30  %\n Tax-Exempt( (1))                                    —                         —                     —     %           —                         —                     —     %           —                         —                     —     %\n Total Securities                              $     109,875            $      1,098                 3.96  %     $     116,041            $      1,255                 4.34  %     $     124,891            $      1,353                 4.30  %\n Loans:\n Taxable                                       $     1,492,680          $      22,680                6.03  %     $     1,478,699          $      21,675                5.88  %     $     1,423,586          $      20,626                5.75  %\n Non-accrual                                         15,358                    —                     —     %           15,113                    —                     —     %           15,058                    —                     —     %\n Tax-Exempt( (1))                                    6,388                     82                    5.09  %           7,002                     87                    4.98  %           9,454                     121                   5.08  %\n Total Loans                                   $     1,514,426          $      22,762                5.96  %     $     1,500,814          $      21,762                5.82  %     $     1,448,098          $      20,747                5.68  %\n Federal funds sold and interest-bearing             149,722                   1,375                 3.64  %           147,832                   1,376                 3.73  %           336,562                   3,858                 4.55  %\n deposits in other banks\n Total earning assets                          $     1,774,023          $      25,235                5.64  %     $     1,764,687          $      24,393                5.54  %     $     1,909,551          $      25,958                5.39  %\n Allowance for credit losses on loans                (18,255)                                                          (17,761)                                                          (15,699)\n Total non-earning assets                            103,104                                                           103,429                                                           118,550\n Total assets                                  $     1,858,872                                                   $     1,850,355                                                   $     2,012,402\n\n Liabilities and Shareholders' Equity:\n Interest-bearing deposits:\n NOW accounts                                  $     302,243            $      1,679                 2.20  %     $     313,794            $      1,684                 2.15  %     $     314,742            $      1,863                 2.35  %\n Money market accounts                               304,800                   1,714                 2.23  %           291,872                   1,578                 2.17  %           267,787                   1,478                 2.19  %\n Savings accounts                                    119,006                   32                    0.11  %           122,424                   32                    0.10  %           125,512                   35                    0.11  %\n Time deposits:\n $250,000 and more                                   173,413                   1,613                 3.69  %           169,195                   1,589                 3.77  %           170,124                   1,761                 4.11  %\n Less than $250,000                                  249,986                   2,197                 3.49  %           247,613                   2,167                 3.51  %           281,617                   2,749                 3.87  %\n Total interest-bearing deposits               $     1,149,448          $      7,235                 2.50  %     $     1,144,898          $      7,050                 2.47  %     $     1,159,782          $      7,886                 2.70  %\n Federal funds purchased                             —                         —                     —     %           —                         —                     —     %           7                         —               N/M\n Federal Home Loan Bank advances                     —                         —                     —     %           —                         —                     —     %           40,000                    494                   4.90  %\n Subordinated debt, net                              29,619                    354                   4.74  %           29,602                    355                   4.81  %           29,552                    354                   4.75  %\n Total interest-bearing liabilities            $     1,179,067          $      7,589                 2.55  %     $     1,174,500          $      7,405                 2.53  %     $     1,229,341          $      8,734                 2.82  %\n Noninterest-bearing liabilities:\n Demand deposits                                     461,525                                                           460,963                                                           579,568\n Other Liabilities                                   23,208                                                            21,852                                                            21,863\n Total liabilities                             $     1,663,800                                                   $     1,657,315                                                   $     1,830,772\n Shareholders' equity                                195,072                                                           193,040                                                           181,630\n Total liabilities and shareholders' equity    $     1,858,872                                                   $     1,850,355                                                   $     2,012,402\n Net interest income ((1))                                              $      17,646                                                     $      16,988                                                     $      17,224\n Net interest spread                                                                                 3.09  %                                                           3.01  %                                                           2.57  %\n Interest expense as a percent of average                                                            1.70  %                                                           1.68  %                                                           1.81  %\n earning assets\n Net interest margin( (1))                                                                           3.95  %                                                           3.86  %                                                           3.58  %\n\n N/M - Not meaningful\n\n (1) Non-GAAP financial measure - Income and yields are reported on\n tax-equivalent basis using a federal tax rate of 21%. Please refer to the\n \"Reconciliation of Tax-Equivalent Net Interest Income\" table for additional\n information.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of Tax-Equivalent Net Interest Income (unaudited)\n                                                        Three Months Ended\n (Dollars in thousands)                                 9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n GAAP Financial Measurements:\n Interest Income - Loans                                $      22,745          $      21,744          $      20,713          $       21,268          $      20,722\n Interest Income - Securities and Other Interest-              2,473                  2,631                  3,113                   3,487                  5,211\n Earnings Assets\n Interest Expense - Deposits                                   7,235                  7,050                  7,225                   7,526                  7,886\n Interest Expense - Other Borrowings                           354                    355                    698                     848                    848\n Total Net Interest Income (GAAP)                       $      17,629          $      16,970          $      15,903          $       16,381          $      17,199\n Non-GAAP Financial Measurements:\n Add:  Tax Benefit on Tax-Exempt Interest Income -      $      17              $      18              $      20              $       26              $      25\n Loans\n Add:  Tax Benefit on Tax-Exempt Interest Income -             —                      —                      —                       —                      —\n Securities\n Total Tax Benefit on Tax-Exempt Interest Income        $      17              $      18              $      20              $       26              $      25\n Tax-Equivalent Net Interest Income (non-GAAP)          $      17,646          $      16,988          $      15,923          $       16,407          $      17,224\n\n Net interest margin ((1))                                     3.94    %              3.86    %              3.63    %               3.60    %              3.57    %\n Net interest margin, tax-equivalent ((2))                     3.95    %              3.86    %              3.63    %               3.61    %              3.58    %\n\n (1) The annualized net interest margin is calculated by dividing net interest\n income by total average earning assets. The Company's net interest margin is a\n common measure used by the financial service industry to determine how\n profitable earning assets are funded.\n\n (2) Non-GAAP financial measure- The annualized net interest margin is\n calculated by dividing tax equivalent net interest income by total average\n earning assets. Tax equivalent interest income is calculated by grossing up\n interest income for the amounts that are non-taxable (i.e., municipal income)\n then subtracting interest expense. The rate utilized is 21%. The Company's net\n interest margin is a common measure used by the financial service industry to\n determine how profitable earning assets are funded. Because the Company earns\n a fair amount of nontaxable interest income due to tax-exempt loan balances,\n net interest income for the ratio is calculated on a tax equivalent basis as\n described above.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of Efficiency Ratio (unaudited)\n                                                            Three Months Ended\n  (Dollars in thousands)                                    9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n Summary of Operating Results:\n Noninterest expenses (GAAP)                                $      16,127          $      15,531          $      14,212          $       15,539          $      14,344\n Less: Loss on other real estate owned                             —                      —                      —                       51                     —\n Less: Loss on sale of repossessed assets                          15                     —                      39                      169                    —\n Less: Merger-related expenses                                     342                    —                      —                       —                      —\n Adjusted noninterest expenses (non-GAAP)                   $      15,770          $      15,531          $      14,173          $       15,319          $      14,344\n\n Net interest income                                               17,629                 16,970                 15,903                  16,381                 17,199\n\n Noninterest income (GAAP)                                         5,296                  8,590                  4,928                   5,355                  5,165\n Less: Gain (loss) on the sale and disposal of premises            7                      (4)                    —                       (1)                    (2)\n and equipment\n Less: Gain on the sale of other assets                            —                      3,486                  —                       —                      —\n Adjusted noninterest income (non-GAAP)                     $      5,289           $      5,108           $      4,928           $       5,356           $      5,167\n Tax equivalent adjustment ((1))                                   17                     18                     20                      26                     25\n Total net interest income and noninterest income,          $      22,935          $      22,096          $      20,851          $       21,763          $      22,391\n adjusted (non-GAAP)\n\n Efficiency ratio                                                  68.76   %              70.29   %              67.97   %               70.39   %              64.06   %\n\n (1) Non-GAAP financial measure -Includes tax-equivalent adjustments on loans\n and securities using the federal statutory tax rate of 21%.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of GAAP to Non-GAAP Performance Highlights (unaudited)\n                                                     Three Months Ended\n (dollars in thousands except for per share data)    9/30/2026              6/30/2026               3/31/2026              12/31/2025              9/30/2025\n GAAP Financial Measurements:\n GAAP Net income                                     $      4,750           $      4,981            $      3,740           $       4,334           $      5,584\n Adjustments to net income:\n (Gain) on sale of other assets                             —                      (3,486)                 —                       —                      —\n Merger-related expenses                                    342                    —                       —                       —                      —\n Tax effect of adjustments to net income                    (72)                   732                     —                       —                      —\n Non-GAAP Adjusted Net income                        $      5,020           $      2,227            $      3,740           $       4,334           $      5,584\n\n GAAP Noninterest income                             $      5,296           $      8,590            $      4,928           $       5,355           $      5,165\n Adjustments to noninterest income:\n Loss on sales of securities                                —                      —                       —                       —                      —\n (Gain) on sale of other assets                             —                      (3,486)                 —                       —                      —\n Non-GAAP Adjusted Noninterest income                $      5,296           $      5,104            $      4,928           $       5,355           $      5,165\n\n GAAP Noninterest expense                            $      16,127          $      15,531           $      14,212          $       15,539          $      14,344\n Adjustments to noninterest expense:\n Merger-related expenses                                    342                    —                       —                       —                      —\n Non-GAAP Adjusted Noninterest expense               $      15,785          $      15,531           $      14,212          $       15,539          $      14,344\n\n Earnings per share, basic and diluted, GAAP         $      0.88            $      0.92             $      0.69            $       0.81            $      1.04\n Effect of adjustments to net income                        0.05                   (0.51)                  —                       —                      —\n Non-GAAP Adjusted Earnings per share, basic and     $      0.93            $      0.41             $      0.69            $       0.81            $      1.04\n diluted\n\n Annualized return on average equity, GAAP                  9.66    %              10.35    %              7.98    %               9.18    %              12.20   %\n Effect of adjustments to net income                        0.55    %              (5.72)   %              —       %               —       %              —       %\n Non-GAAP Adjusted Annualized return on                     10.21   %              4.63     %              7.98    %               9.18    %              12.20   %\n average equity\n\n Annualized return on average assets, GAAP                  1.01    %              1.08     %              0.81    %               0.91    %              1.10    %\n Effect of adjustments to net income                        0.06    %              (0.60)   %              —       %               —       %              —       %\n Non-GAAP Adjusted Annualized return on                     1.07    %              0.48     %              0.81    %               0.91    %              1.10    %\n average assets\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2026-third-quarter-financial-results-and-quarterly-dividend-302917403.html\n(https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2026-third-quarter-financial-results-and-quarterly-dividend-302917403.html)\n\nSOURCE Eagle Financial Services, Inc.\n\n\n\nKathleen J. Chappell, Executive Vice President and CFO, 540-955-2510, kchappell@bankofclarke.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS471471/EFSI-updated-logo.jpg?id=OA3035325\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn6Y75sKa-20261022","title":"EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2026 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND","author":"PR Newswire","ticker":"EFSI","created":"2026-10-22T20:10:00.612Z","tickers":["EFSI"],"exchange":"NASDAQ","article_body":"EAGLE FINANCIAL SERVICES, INC. ANNOUNCES 2026 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND\nPR Newswire\n\nWASHINGTON, Oct. 22, 2026\n\nWASHINGTON, Oct. 22, 2026 /PRNewswire/ -- Eagle Financial Services, Inc.\n(NASDAQ: EFSI) (the \"Company\"), the holding company for Bank of Clarke (\"the\nBank\"), announced its third quarter 2026 results. Also, on October 22, 2026,\nthe Board of Directors announced a quarterly common stock cash dividend of\n$0.31 per common share, payable on November 13, 2026, to shareholders of\nrecord on November 2, 2026. The following table presents selected financial\nperformance highlights for the periods indicated:\n\n                                   Three Months Ended\n                                   September 30,                                          June 30,                                               September 30,\n                                   2026                                                   2026                                                   2025\n                                   (Dollars in thousands, except per share data)\n                                                          As adjusted( (1))                                      As adjusted( (1))\n Consolidated net income           $    4,750             $          5,020                $    4,981             $          2,227                $         5,584\n\n Consolidated noninterest income   $    5,296             $          5,296                $    8,590             $          5,104                $         5,165\n\n Consolidated noninterest expense  $    16,127            $          15,785               $    15,531            $          15,531               $         14,344\n\n Earnings per share - basic and    $    0.88              $          0.93                 $    0.92              $          0.41                 $         1.04\n diluted\n\n Annualized return on average           9.66    %                    10.21      %              10.35   %                    4.63       %                   12.20     %\n equity\n\n Annualized return on average           1.01    %                    1.07       %              1.08    %                    0.48       %                   1.10      %\n assets\n\n (1) Non-GAAP financial measure - Excluding the tax effected impact of merger\n expenses during the quarter ended September 30, 2026 and the gain on sale of\n other assets during the quarter ended June 30, 2026. See the \"Reconciliation\n of GAAP to Non-GAAP Performance Highlights\" table for a reconciliation of\n these measures to comparable measures calculated in accordance with GAAP.\n\nAdditional key highlights for the third quarter of 2026 are as follows:\n\n * Announced a proposed strategic merger with John Marshall Bancorp, Inc. (\"John\nMarshall\"), a transformative transaction expected to enhance scale, market\npresence, and long-term shareholder value.\n * Net loans increased by $32.4 million or 2.19% while deposits increased by\n$21.3 million or 1.33%, in each case compared to June 30, 2026.\n * Net interest margin increased from 3.86% for the quarter ended June 30, 2026\nto 3.95% for the quarter ended September 30, 2026. Net interest spread\nincreased from 3.01% for the quarter ended June 30, 2026 to 3.09% for the\nquarter ended September 30, 2026.\nBrandon Lorey, President and CEO, stated, \"The third quarter was an important\none for EFSI, with strong execution across the franchise while we also\nannounced our proposed merger with John Marshall Bancorp. Net loans grew $32.4\nmillion during the quarter, reflecting both strong customer demand and the\ncontinued efforts of our lending teams, while our net interest margin improved\nto 3.95% as the balance sheet actions we have taken over the past two years\ncontinued to deliver results. We are entering this combination from a position\nof strength, and we believe bringing together two strong community banking\nfranchises creates an opportunity to deliver meaningful long-term value for\nour shareholders. I could not be prouder of our team for staying focused on\nour customers and communities while also taking on the additional work\nrequired to prepare for what is ahead.\"\n\nSummary\n\nNet income for the quarters ended September 30, 2026 and June 30, 2026 was\n$4.8 million and $5.0 million, respectively. Net income was $5.6 million for\nthe quarter ended September 30, 2025. During the third quarter of 2026, the\nCompany incurred $342 thousand of pre-tax merger-related expenses related to\nthe announced merger with John Marshall in September 2026. During the second\nquarter of 2026, the Company sold its membership interest in Bearing Insurance\nGroup, LLC (\"Bearing\") to an unaffiliated third party and recognized a pre-tax\ngain of $3.5 million, which was recorded in gain on sale of other assets in\nthe consolidated statements of income. Excluding the tax-effected impact of\nthe merger-related expenses incurred during the third quarter of 2026 and the\ngain on the sale of Bearing recognized during the second quarter of 2026,\nadjusted net income for the quarters ended September 30, 2026 and June 30,\n2026, were $5.0 million and $2.2 million, respectively. Adjusted net income is\na non-GAAP financial measure. Please refer to the \"Reconciliation of GAAP to\nNon-GAAP Performance Highlights\" table for additional information.\n\nFor the quarter ended September 30, 2026, adjusted net income increased $2.8\nmillion, or 125.4%, compared to the quarter ended June 30, 2026, and decreased\n$564 thousand, or 10.1%, compared to the quarter ended September 30, 2025.\nThe increase from the quarter ended June 30, 2026 was primarily driven by a\nlower provision for credit losses. The decrease compared to the quarter ended\nSeptember 30, 2025 was primarily attributable to higher salary and employee\nbenefit expenses. Additional details regarding these changes are provided\nbelow.\n\nInterest Income\n\nTotal loan interest income was $22.7 million and $21.7 million for the\nquarters ended September 30, 2026 and June 30, 2026, respectively. Total loan\ninterest income was $20.7 million for the quarter ended September 30, 2025.\nCompared to the quarter ended September 30, 2026, total loan interest income\nincreased $1.0 million or 4.6% from the quarter ended June 30, 2026 and\nincreased $2.0 million or 9.8% from the quarter ended September 30, 2025.\nAverage loans during the quarter ended September 30, 2026 increased by $13.6\nmillion or 0.9% from the quarter ended June 30, 2026 while the tax equivalent\nyield on average loans increased 14 basis points over the same time period.\nAverage loans increased $66.3 million or 4.6% between the quarter ended\nSeptember 30, 2026 and September 30, 2025 while the tax equivalent yield on\naverage loans increased 28 basis points over the same time period. Overall,\nhigher average loan balances combined with an increase in the tax-equivalent\nyield on average loans contributed to the growth in loan interest income\ncompared to both the linked and prior-year quarters.\n\nInterest and dividend income from the investment portfolio was $1.1 million\nand $1.3 million for the quarters ended September 30, 2026 and June 30, 2026,\nrespectively. Interest and dividend income from the investment portfolio was\n$1.4 million for the quarter ended September 30, 2025. The tax equivalent\nyield on average investments for the quarter ended September 30, 2026 was\n3.96%, which decreased 38 basis points from 4.34% from the quarter ended June\n30, 2026 and decreased 34 basis points from 4.30% for the quarter ended\nSeptember 30, 2025. The decrease in yield compared with the quarters ended\nJune 30, 2026 and September 30, 2025 primarily reflects the decline dividend\nincome during the quarter due to a lower Federal Home Loan Bank stock balance\nfollowing the repayment of FHLB advances.\n\nInterest Expense\n\nTotal interest expense was $7.6 million and $7.4 million for the three months\nended September 30, 2026 and June 30, 2026, respectively, and $8.7 million\nfor three months ended September 30, 2025. The modest increase in interest\nexpense from the quarter ended June 30, 2026 compared to the quarter ended\nSeptember 30, 2026 was primarily attributable to higher interest expense on\ndeposits. Compared to the quarter ended September 30, 2025, interest expense\ndecreased $1.1 million, driven by a $651 thousand reduction in deposit\ninterest expense and a $494 thousand decrease in interest expense on Federal\nHome Loan Bank (\"FHLB\") advances. The decrease in deposit interest expense\nresulted from a $10.3 million decline in average interest-bearing deposit\nbalances and a 20 basis point reduction in the average rate paid on those\ndeposits, primarily due to the runoff of higher-cost time deposits.\nAdditionally, the average balance of FHLB advances during the quarter ended\nSeptember 30, 2026 declined by $40.0 million compared to the quarter ended\nSeptember 30, 2025, reflecting the payoff of outstanding advances.\n\nNet Interest Income\n\nNet interest income for the quarter ended September 30, 2026 was $17.6\nmillion reflecting an increase of $659 thousand or 3.9% from the quarter ended\nJune 30, 2026 and an increase of $430 thousand or 2.5% from the quarter ended\nSeptember 30, 2025. Net interest income was $17.0 million and $17.2 million,\nrespectively, for the quarters ended June 30, 2026 and September 30, 2025.\n\nNet interest margin was 3.95% for the quarter ended September 30, 2026,\ncompared to 3.86% for the quarter ended June 30, 2026 and 3.58% for the\nquarter ended September 30, 2025. The increase in net interest margin compared\nto both the prior quarter and prior-year quarter was primarily attributable to\nhigher average yields on loans, as discussed above under Interest Income.\nAdditionally, the increase compared to the quarter ended September 30, 2025\nbenefited from the payoff of FHLB advances during the first quarter of 2026,\nwhich eliminated related interest expense in the current quarter, and the\nrunoff of higher-cost non-core deposits, which reduced overall funding costs.\nThe net interest spread increased to 3.09% for the quarter ended\nSeptember 30, 2026, compared to 3.01% for the quarter ended June 30, 2026 and\n2.57% for the quarter ended September 30, 2025.\n\nThe Company's net interest margin is not a measurement under accounting\nprinciples generally accepted in the United States, but it is a common measure\nused by the financial services industry to determine how profitable earning\nassets are funded. The Company's net interest margin is calculated by dividing\ntax equivalent net interest income by total average earning assets. Tax\nequivalent net interest income is calculated by grossing up interest income\nfor the amounts that are non-taxable (i.e., municipal income) then subtracting\ninterest expense. The tax rate utilized is 21%. This is a non-GAAP financial\nmeasure. Please refer to the \"Reconciliation of Tax-Equivalent Net Interest\nIncome\" table for additional information.\n\nNoninterest Income and Expense\n\nTotal noninterest income was $5.3 million and $8.6 million for the quarters\nended September 30, 2026 and June 30, 2026 respectively. Total noninterest\nincome was $5.2 million for the quarter ended September 30, 2025.\n                                                 For The Three Months Ended\n (Dollars in thousands)                          9/30/2026             6/30/2026             $                      %                9/30/2025         $                    %\n                                                                                             Change                 Change                             Change               Change\n Noninterest Income\n Wealth management fees                          $      1,744          $      2,197          $     (453)                  -20.6  %   $      1,827      $     (83)                 -4.5   %\n Service charges on deposit accounts                    606                   563                  43                     7.6    %          558              48                   8.6    %\n Other service charges and fees                         1,096                 1,028                68                     6.6    %          1,151            (55)                 -4.8   %\n Gain (loss) on the sale and disposal of bank           7                     (4)                  11               NM                      (2)              9              NM\n premises and equipment\n Gain on sale of loans held for sale                    1,255                 646                  609                    94.3   %          1,012            243                  24.0   %\n Gain on sale of other assets                           —                     3,486                (3,486)          NM                      —                —              NM\n Small business investment company income               213                   110                  103                    93.6   %          58               155                  267.2  %\n Bank owned life insurance income                       280                   289                  (9)                    -3.1   %          268              12                   4.5    %\n Other operating income                                 95                    275                  (180)                  -65.5  %          293              (198)                -67.6  %\n Total noninterest income                        $      5,296          $      8,590          $     (3,294)                -38.3  %   $      5,165      $     131                  2.5    %\n\nTotal noninterest income decreased in the third quarter of 2026 compared to\nthe second quarter of 2026, primarily due to a gain on the sale of other\nassets recognized in the second quarter of 2026. During the second quarter,\nthe Company sold its membership interest in Bearing to an unaffiliated third\nparty and recognized a pre-tax gain of $3.5 million, which was recorded in\ngain on sale of other assets.\n\nNoninterest income, as adjusted to exclude the one-time effect of the gain on\nthe sale, was $5.1 million for the quarter ended June 30, 2026. This adjusted\namount is a non-GAAP financial measure. See the \"Reconciliation of GAAP to\nNon-GAAP Performance Highlights\" table for additional information.\n\nCompared to both the second quarter of 2026 and the third quarter of 2025,\nadjusted noninterest income increased primarily due to higher gains on the\nsale of loans held for sale. The increase was driven by higher sales volume\nwithin the Small Business Administration (\"SBA\") loan portfolio. Partially\noffsetting this increase was lower wealth management fee income, as both the\nsecond quarter of 2026 and the third quarter of 2025 benefited from elevated\ntransaction-based revenues related to estates and other client services.\n\nNoninterest expense increased $596 thousand, or 3.8%, to $16.1 million for the\nquarter ended September 30, 2026 from $15.5 million for the quarter ended\nJune 30, 2026 and increased $1.8 million or 12.4% compared to the quarter\nended September 30, 2025.\n                                       For The Three Months Ended\n (Dollars in thousands)                9/30/2026              6/30/2026              $                    %                9/30/2025          $                    %\n                                                                                     Change               Change                              Change               Change\n Noninterest Expenses\n Salaries and employee benefits        $      9,627           $      9,212           $     415                  4.5    %   $      8,717       $     910                  10.4   %\n Occupancy expenses                           696                    613                   83                   13.5   %          691               5                    0.7    %\n Equipment expenses                           495                    451                   44                   9.8    %          437               58                   13.3   %\n Advertising and marketing expenses           264                    295                   (31)                 -10.5  %          317               (53)                 -16.7  %\n Stationery and supplies                      39                     30                    9                    30.0   %          37                2                    5.4    %\n ATM network fees                             330                    326                   4                    1.2    %          327               3                    0.9    %\n Loss on sale of repossessed assets           15                     —                     15             NM                      —                 15             NM\n FDIC assessment                              200                    169                   31                   18.3   %          172               28                   16.3   %\n Computer software expense                    432                    422                   10                   2.4    %          389               43                   11.1   %\n Bank franchise tax                           530                    530                   —                    0.0    %          388               142                  36.6   %\n Professional fees                            716                    551                   165                  29.9   %          493               223                  45.2   %\n Data processing fees                         553                    591                   (38)                 -6.4   %          469               84                   17.9   %\n Merger-related expenses                      342                    —                     342            NM                      —                 342            NM\n Other operating expenses                     1,888                  2,341                 (453)                -19.4  %          1,907             (19)                 -1.0   %\n Total noninterest expenses            $      16,127          $      15,531          $     596                  3.8    %   $      14,344      $     1,783                12.4   %\n\nAs previously announced, the Company entered into a definitive merger\nagreement with John Marshall during the third quarter of 2026. Merger-related\nexpenses of $342 thousand were recognized during the quarter in connection\nwith the proposed transaction. No merger-related expenses were incurred during\neither the second quarter of 2026 or the third quarter of 2025. Excluding\nthese merger-related expenses, noninterest expense totaled $15.8 million\nduring the third quarter of 2026.\n\nTotal noninterest expense increased in the third quarter of 2026 compared to\nthe second quarter of 2026, primarily due to higher salaries and benefits\nexpense. The increase was largely attributable to higher commission expense\nassociated with increased loan sale volume, higher incentive compensation\naccruals as performance metrics reached payout thresholds during the quarter,\nand increased loan production incentive accruals resulting from loan growth.\n\nTotal noninterest expense increased in the third quarter of 2026 compared to\nthe third quarter of 2025, primarily due to higher salaries and employee\nbenefits expense. In addition to the higher incentive compensation accruals\ndiscussed above, salaries and employee benefits expense increased as a result\nof growth in the Company's workforce, with full-time equivalent (\"FTE\")\nemployees increasing from 249 to 262 during the period. Additionally, annual\nmerit increases and compensation adjustments implemented at the end of the\nfirst quarter of 2026 contributed to higher personnel costs during the\nquarter.\n\nAsset Quality and Provision for Credit Losses\n                                                              As of\n (dollars in thousands)                                       September 30,             June 30, 2026             September 30,\n                                                              2026                                                2025\n\n Nonaccrual loans                                             $         15,641          $         16,146          $         13,167\n Loans past due 90 days or more and accruing interest                   104                       20                        91\n Other real estate owned and repossessed assets                         250                       302                       1,009\n Total nonperforming assets                                   $         15,995          $         16,468          $         14,267\n\n Allowance for credit losses on loans                         $         18,533          $         18,306          $         14,810\n\n Allowance for credit losses on loans to total gross loans              1.21      %               1.22      %               1.01      %\n\n Non-performing assets to total assets                                  0.86      %               0.89      %               0.74      %\n\nNonperforming assets consist of nonaccrual loans, loans 90 days or more past\ndue and still accruing, other real estate owned (foreclosed properties), and\nrepossessed assets. Nonperforming assets decreased by $473 thousand between\nJune 30, 2026 and September 30, 2026. This decrease was due to the $507\nthousand partial write-down to an existing commercial and industrial\nsyndicated relationship. This partial write-down was due to the restructuring\nof this loan relationship by the lead bank. Nonperforming assets increased\n$1.7 million or 12.1% as of September 30, 2026 in comparison to\nSeptember 30, 2025 mainly due to several large relationships in excess of $1\nmillion being placed in nonaccrual status during the period. The increase in\nnonaccrual loans is partially offset by a decrease of $759 thousand in\nrepossessed assets. All repossessed assets held at September 30, 2025 were\nsold prior to September 30, 2026, contributing to the decline in repossessed\nassets, although this decrease was partially offset by the addition of a new\nrepossessed asset during the second quarter of 2026.\n\nThe majority of all nonaccrual loans are secured by real estate and management\nevaluates the financial condition of these borrowers and the value of any\ncollateral on these loans. The results of these evaluations are used to\nestimate the amount of losses which may be realized on the disposition of\nthese nonaccrual loans. Specific reserves on nonaccrual loans totaled $3.4\nmillion, $3.1 million, and $333 thousand at September 30, 2026, June 30,\n2026, and September 30, 2025, respectively. The increase from June 30, 2026\nwas primarily attributable to an additional $708 thousand specific reserve\nallocation on an existing nonaccrual multifamily relationship, reflecting\nupdated collateral valuations based on signed letters of intent received for\ntwo properties securing the credit, as well as a specific reserve allocation\non one marine loan. Compared to September 30, 2025, the increase in specific\nreserves was driven by new specific reserves on an existing nonaccrual\nmultifamily relationship as well as specific reserve allocations established\non two SBA loans.\n\nNet charge-offs totaled $1.0 million for the quarter ended September 30,\n2026, compared to $2.2 million for the linked quarter and $2.3 million for the\nthird quarter of 2025. Charge-offs recognized during the third quarter of 2026\nwere distributed across several loan portfolios, with the majority occurring\nwithin the commercial and industrial and construction and farmland portfolios.\nIn the second quarter of 2026, net charge-offs were primarily driven by a $1.6\nmillion partial charge-off of a single multifamily relationship to reflect the\nfair value of the underlying collateral, net of estimated selling costs, while\nthe remaining charge-offs were attributable to five smaller relationships. Net\ncharge-offs during the third quarter of 2025 were primarily attributable to\nthe write-off of a $1.1 million deficiency balance loan and a $468 thousand\nwrite-down on a nonaccrual commercial real estate loan. The decline in net\ncharge-offs compared to both prior periods reflects the absence of similarly\nsignificant relationship-specific charge-offs, while continuing to demonstrate\nthe Company's proactive approach to identifying and addressing credit\ndeterioration and maintaining appropriate collateral-based valuations within\nthe loan portfolio.\n\nThe allowance for credit losses as a percentage of total loans was 1.21% at\nSeptember 30, 2026, compared to 1.22% at June 30, 2026 and 1.01% at\nSeptember 30, 2025. The slight decrease from the linked quarter primarily\nreflected lower qualitative factor adjustments in certain portfolios, most\nnotably construction and farmland and home equity lines of credit, partially\noffset by higher qualitative factor adjustments within the commercial and\nindustrial portfolio associated with loan growth and credit quality trends.\nCompared to September 30, 2025, the higher allowance ratio was primarily\ndriven by changes in historical loss factors, particularly within the marine\nand non-owner-occupied commercial real estate portfolios, as well as elevated\nqualitative factor adjustments in certain portfolios, including commercial and\nindustrial and construction and farmland loans, reflecting loan growth and\ncredit quality trends. There were also increased specific reserves during this\nperiod. The Company's allowance for credit losses continues to reflect\nmanagement's assessment of the credit risk inherent in the loan portfolio and\nits commitment to maintaining appropriate reserve coverage.\n\nThe provision for credit losses on loans reflects management's ongoing\nassessment of the adequacy of the allowance for credit losses and the credit\nrisk inherent in the loan portfolio. The Company recorded a provision for\ncredit losses on loans of $1.3 million for the quarter ended September 30,\n2026, compared to $3.2 million for the quarter ended June 30, 2026 and $1.1\nmillion for the quarter ended September 30, 2025. The decrease from the linked\nquarter was primarily driven by lower reserve requirements resulting from\nchanges in qualitative factor adjustments and lower levels of net charge-offs.\nIncreases in specific reserves partially offset this decline. Compared to the\nthird quarter of 2025, the provision increased modestly, reflecting loan\nportfolio growth, higher specific reserves, and changes in qualitative factors\nwithin certain loan portfolios. The provision reflects management's\ndisciplined approach to reserve methodology and its commitment to maintaining\na strong allowance for credit losses that appropriately reflects portfolio\ngrowth, current economic conditions, and identified credit risks.\n\nManagement's judgment in determining the level of the allowance is based on\nevaluations of the collectability of loans while taking into consideration\nsuch factors as trends in delinquencies and charge-offs, changes in the nature\nand volume of the loan portfolio, current economic conditions that may affect\na borrower's ability to repay and the value of collateral, overall portfolio\nquality and review of specific potential losses. The Company is committed to\nmaintaining an allowance at a level that adequately reflects expected credit\nlosses over the life of the loan portfolio.\n\nBalance Sheet\n\nTotal consolidated assets were $1.87 billion at September 30, 2026, an\nincrease of $23.1 million, or 1.3%, from $1.85 billion at June 30, 2026.\nCompared to September 30, 2025, total consolidated assets decreased from\n$1.93 billion. The linked-quarter increase was driven primarily by growth in\nthe loan portfolio, reflecting continued customer demand. The year-over-year\ndecrease in total assets was primarily attributable to the runoff of non-core\ndeposits, which contributed to a decline in cash and cash equivalents. This\ndecrease was partially offset by net loan growth of $68.3 million. Despite the\ndecline in total assets from the prior-year period, the Company maintained a\nstrong balance sheet while continuing to strategically deploy capital into\nhigher-yielding earning assets.\n\nTotal net loans increased $32.4 million, or 2.2%, to $1.51 billion at\nSeptember 30, 2026 from $1.48 billion at June 30, 2026, driven by growth\nacross several key lending categories, including commercial real estate,\nresidential real estate and commercial and industrial loans. Compared to\nSeptember 30, 2025, total net loans increased $68.3 million, or 4.7%, from\n$1.45 billion, reflecting continued success in generating new lending\nopportunities and serving the credit needs of the Company's markets.\nYear-over-year growth was concentrated in the same core lending segments that\ncontributed to the linked-quarter increase, demonstrating the strength and\nconsistency of the Company's loan production efforts.\n\nTotal deposits were $1.62 billion at September 30, 2026, an increase of $21.3\nmillion, or 1.3%, from June 30, 2026. Total deposits were $1.66 billion at\nSeptember 30, 2025. The linked-quarter increase reflects the increase in\nbrokered certificates of deposit of $15.8 million in addition to the continued\nstability of the Company's deposit base. The year-over-year decrease was\nprimarily attributable to the temporary nature of unusually large\nnoninterest-bearing deposit balances received during the second quarter of\n2025. Specifically, noninterest-bearing deposits increased by approximately\n$151.7 million during second quarter of 2025, largely due to business sale\nproceeds from two customers. As anticipated, the majority of these funds had\nexited the Bank by the end of 2025. Excluding the impact of these temporary\nbalances, the Company's deposit base has remained relatively stable and\ncontinues to provide a solid source of funding for loan growth and other\nbalance sheet initiatives.\n\nCore deposit change for the quarter and twelve months ended September 30,\n2026 was an increase of  $1.4 million and an increase of $21.7 million,\nrespectively. Core deposits consist of checking accounts, NOW accounts, money\nmarket accounts, regular savings accounts and time deposits less than $250\nthousand.\n\nLiquidity\n\n The objective of the Company's liquidity management is to ensure the\ncontinuous availability of funds to satisfy the credit needs of our customers\nand the demands of our depositors, creditors and investors. Uninsured deposits\nrepresent an estimate of amounts above the Federal Deposit Insurance\nCorporation (\"FDIC\") insurance coverage limit of $250,000. As of\nSeptember 30, 2026, the Company's uninsured deposits were approximately\n$226.0 million or 13.9% of total deposits.\n\nThe Company's liquid assets, which include cash and due from banks,\ninterest-bearing deposits at other banks, loans with a maturity less than one\nyear and nonpledged securities available for sale, were $421.8 million and\nborrowing availability was $484.1 million as of September 30, 2026, which in\ntotal exceeded uninsured deposits, excluding intercompany cash holdings and\nsecured municipal deposits, by $679.9 million. Liquid assets increased by\n$76.6 million during the third quarter of 2026 due mainly to loan growth. In\naddition to deposits, the Company utilizes short-term and long-term borrowings\nas sources of funds. Short-term borrowings from the Federal Reserve Bank and\nthe FHLB as well as federal funds purchased from Community Bankers Bank may be\nused to fund the Company's day-to-day operations. Long-term borrowings include\nFHLB advances as well as subordinated debt. Total outstanding borrowings\ndecreased to $29.6 million at September 30, 2026 from $69.6 million at\nSeptember 30, 2025. The decrease was primarily due to the paydown of\noutstanding FHLB advances. Borrowings remained stable from June 30, 2026 to\nSeptember 30, 2026.\n\nAdditional sources of liquidity available to the Company include cash flows\nfrom operations, loan payments and payoffs, deposit growth, maturities, calls\nand sales of securities and the issuance of brokered certificates of\ndeposit.\n\nCapital and Dividends\n\nOn October 21, 2026, the Board of Directors announced a quarterly common stock\ncash dividend of $0.31 per common share, payable on November 13, 2026, to\nshareholders of record on November 2, 2026. The Board of Directors of the\nCompany regularly reviews the amount of cash dividends per share and the\nresulting dividend payout ratio in light of changes in economic conditions,\ncurrent and future capital requirements, and expected future earnings.\n\nTotal consolidated equity increased $9.7 million to $195.3 million at\nSeptember 30, 2026 compared to September 30, 2025 and increased $1.4 million\ncompared to June 30, 2026. The increases are primarily due to increased\nretained earnings from net income.\n\nThe Company's securities available for sale are fixed income debt securities\nand their unrealized loss position is a result of increased market interest\nrates since they were purchased. The Company expects to recover its\ninvestments in debt securities through scheduled payments of principal and\ninterest. The accumulated other comprehensive loss related to the Company's\nsecurities available for sale increased to $8.2 million at September 30, 2026\ncompared to $6.1 million at June 30, 2026 and $5.6 million at September 30,\n2025.\n\nAs of September 30, 2026, the most recent notification from the FDIC\ncategorized the Bank as well capitalized under the regulatory framework for\nprompt corrective action. To be categorized as well capitalized under\nregulations applicable at September 30, 2026, Bank was required to maintain\nminimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1\nleverage ratios. In addition to the regulatory risk-based capital\nrequirements, Bank must maintain a capital conservation buffer of additional\ncapital of 2.5 percent of risk-weighted assets as required by the Basel III\ncapital rules.  The Bank exceeded these ratios at September 30, 2026.\n\nExplanation of Non-GAAP Financial Measures\n\nThis release contains financial information determined by methods other than\nin accordance with GAAP. Management believes that the supplemental Non-GAAP\ninformation provides a better comparison of period-to-period operating\nperformance and the impact of merger-related expenses and non-recurring\ntransactions, such as the gain on sale of Bearing, on the Company's results.\nAdditionally, the Company believes this information is utilized by regulators\nand market analysts to evaluate a company's results and financial condition\nand therefore, such information is useful to investors. These disclosures\nshould not be viewed as a substitute for or more important than financial\nresults in accordance with GAAP, nor are they necessarily comparable to\nnon-GAAP performance measures which may be presented by other companies.\n\nCautionary Note Regarding Forward-Looking Statements\n\nCertain information contained in this communication may include\n\"forward-looking statements\" within the meaning of Section 27A of the\nSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange\nAct of 1934, as amended. Forward-looking statements are statements that\ninclude, without limitation, statements made in Mr. Lorey's quotations,\nstatements regarding the Company's pending merger with John Marshall (the\n\"proposed merger\") and expectations with regard to the benefits of the\nproposed merger, statements regarding the Company's business, financial and\noperating results including the Company's deposit base and funding, the impact\nof future economic conditions, changes in economic conditions, management's\nbeliefs regarding the Company's liquidity, capital resources, asset quality,\nloan portfolio, and statements that include other projections, predictions,\nexpectations or beliefs about future events or results or otherwise are not\nstatements of historical fact. Such forward-looking statements are based on\ncertain assumptions as of the time they are made, and are inherently subject\nto known and unknown risks, uncertainties and other factors some of which\ncannot be predicted or quantified, that may cause actual results, performance\nor achievements to be materially different from those expressed or implied by\nsuch forward-looking statements. Forward-looking statements are often\ncharacterized by the use of qualified words (and their derivatives) such as\n\"expect,\" \"believe,\" \"estimate,\" \"plan,\" \"project,\" \"anticipate,\" \"intend,\"\n\"will,\" \"may,\" \"view,\" \"opportunity,\" \"seek to,\" \"potential,\" \"continue,\"\n\"confidence,\" or words of similar meaning or other statements concerning\nopinions or judgments of the Company and its management about future events.\nAlthough the Company believes that its expectations with respect to the\nforward-looking statements are based upon reliable assumptions within the\nbounds of its knowledge of its business and operations, there can be no\nassurance that actual results, performance or achievements of the Company will\nnot differ materially from any future results, performance or achievements\nexpressed or implied by such forward-looking statements.  Forward-looking\nstatements speak only as of the date of this release.  The Company undertakes\nno obligation to update or revise any forward-looking statement, except as\nrequired by law.\n\nBecause forward-looking statements are subject to assumptions and\nuncertainties, actual results or future events could differ, possibly\nmaterially, from those indicated in or implied by such forward-looking\nstatements as a result of a variety of factors, many of which are beyond the\nCompany's control. Caution should be exercised against placing undue reliance\non forward-looking statements. Factors which could cause actual results to\ndiffer materially include, but are not limited to, the following: the\noccurrence of any event, change or other circumstances that could give rise to\nthe right of John Marshall or the Company to terminate the definitive merger\nagreement; the outcome of any legal proceedings or governmental inquiries or\nactions that may be instituted against John Marshall, the Company or the\ncombined company; the possibility that the proposed merger will not close when\nexpected or at all because required regulatory, shareholder or other approvals\nor consents are not received or other conditions to the closing are not\nsatisfied on a timely basis or at all, or are obtained subject to conditions\nthat are not anticipated (and the risk that required regulatory approvals may\nresult in the imposition of conditions that could adversely affect the\ncombined company or the expected benefits of the proposed merger); the ability\nof John Marshall and the Company to meet expectations regarding the timing,\ncompletion and accounting and tax treatments of the proposed merger; any\nchanges of, including the risk that any announcements relating to the proposed\nmerger could have adverse effects on, the market price of the common stock of\nJohn Marshall or the Company; the possibility that the anticipated benefits or\nsynergies of the proposed merger will not be realized when expected or at all,\nincluding as a result of the impact of, or problems arising from, the\nintegration of the two companies or as a result of the strength of the economy\nand competitive factors in the areas where John Marshall and the Company do\nbusiness, and such integration may be more difficult, time-consuming or costly\nthan expected and may result in unexpected liabilities or operational\ndisruptions; certain restrictions during the pendency of the proposed merger\nthat may impact the Company's ability to pursue certain business opportunities\nor strategic transactions; the possibility that the proposed merger may be\nmore expensive to complete than anticipated, including as a result of\nunexpected factors or events; diversion of the Company's management from\nongoing business operations and opportunities; revenues following the proposed\nmerger may be lower than expected; the ability of John Marshall, the Company\nor the combined company to retain or hire key employees or to maintain\nrelationships with customers, suppliers or other business partners, in\nconnection with the announcement, pendency or completion of the proposed\nmerger; changes in interest rates and general economic, political and market\nconditions, including inflation and recession; the legislative and regulatory\nclimate and changes in laws or government regulations or policies affecting\nfinancial institutions; monetary and fiscal policies of the U.S. Government,\nincluding policies of the U.S. Treasury and Federal Reserve; the quality or\ncomposition of the Company's loan or investment portfolios; the Company's\nability to successfully resolve non-performing assets; demand for loan\nproducts; liquidity and deposit flows; competition; demand for financial\nservices in the Company's market area; the Company's ability to keep pace with\nnew technologies; a failure in or breach of the Company's operational or\nsecurity systems or infrastructure, or those of third-party vendors or other\nservice providers, including as a result of cyberattacks; the Company's\ncapital and liquidity; changes in tax and accounting rules, principles,\npolicies and guidelines; and other factors included in the Company's Annual\nReport on Form 10-K for the year ended December 31, 2025 and other filings\nwith the Securities and Exchange Commission (the \"SEC\").\n\nAdditional Information About the Proposed Merger and Where to Find It\n\nIn connection with the proposed merger of John Marshall and the Company, John\nMarshall filed with the SEC a registration statement on Form S-4 (File No.\n333-299276) on October 2, 2026, as amended (the \"Registration Statement\"),\nwhich includes the joint proxy statement of John Marshall and the Company that\nalso constitutes a prospectus of John Marshall (the \"Definitive Joint Proxy\nStatement/Prospectus\"). The Registration Statement was declared effective on\nOctober 16, 2026, and each of John Marshall and the Company commenced mailing\nof the Definitive Joint Proxy Statement/Prospectus to their respective\nshareholders on or about October 16, 2026. Each of John Marshall and the\nCompany may file with the SEC other relevant documents concerning the proposed\nmerger.\n\nINVESTORS AND SHAREHOLDERS OF JOHN MARSHALL AND THE COMPANY AND THEIR\nRESPECTIVE AFFILIATES ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE\nREGISTRATION STATEMENT, THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, AND\nANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION\nWITH THE PROPOSED MERGER, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE\nDOCUMENTS, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT\nJOHN MARSHALL, THE COMPANY AND THE PROPOSED MERGER.\n\nInvestors and shareholders are able to obtain a free copy of the Registration\nStatement, the Definitive Joint Proxy Statement/Prospectus, and other relevant\ndocuments filed with the SEC containing information about John Marshall and\nthe Company, without charge, at the SEC's website, www.sec.gov\n(http://www.sec.gov) . Copies of documents filed with the SEC by John Marshall\nwill be made available free of charge in the \"Investor Relations\" section of\nJohn Marshall's website, investor.johnmarshallbank.com, or can be obtained by\nrequesting by mail at John Marshall Bancorp, Inc., 1943 Isaac Newton Square\nEast, Suite 100, Reston, Virginia 20190, Attention: Corporate Secretary.\nCopies of documents filed with the SEC by the Company will be made available\nfree of charge in the \"Investor Relations\" section of the Company's website,\ninvestors.bankofclarke.bank, or can be obtained by requesting by mail at Eagle\nFinancial Services, Inc., 2 East Main St, P.O. Box 391, Berryville, Virginia\n22611, Attention: Secretary. The information on John Marshall's or the\nCompany's respective websites is not, and shall not be deemed to be, a part of\nthis communication or incorporated into other filings either company makes\nwith the SEC.\n\nParticipants in the Solicitation\n\nJohn Marshall, the Company and certain of their respective directors and\nexecutive officers may be deemed to be participants in the solicitation of\nproxies from shareholders of John Marshall and shareholders of the Company in\nrespect of the proposed merger under the rules of the SEC. Information\nregarding John Marshall's directors and executive officers is available in its\ndefinitive proxy statement for its 2026 annual meeting of shareholders, which\nwas filed with the SEC on April 29, 2026, and certain other documents filed by\nJohn Marshall with the SEC. Information regarding the Company's directors and\nexecutive officers is available in its definitive proxy statement for its 2026\nannual meeting of shareholders, which was filed with the SEC on April 8, 2026,\nand certain other documents filed by the Company with the SEC. Other\ninformation regarding the participants in the solicitation of proxies in\nrespect of the proposed merger and a description of their direct and indirect\ninterests, by security holdings or otherwise, is and will be contained in the\nDefinitive Joint Proxy Statement/Prospectus related to the proposed merger and\nother relevant materials filed with the SEC by John Marshall and the Company,\nrespectively. Free copies of these documents may be obtained as described in\nthe preceding section.\n\nNo Offer or Solicitation\n\nThis communication does not constitute an offer to sell or the solicitation of\nan offer to buy any securities or a solicitation of any vote or approval with\nrespect to the proposed merger, nor shall there be any sale of securities in\nany jurisdiction in which such offer, solicitation or sale would be unlawful\nprior to registration or qualification under the securities laws of any such\njurisdiction. No offer of securities shall be made except by means of a\nprospectus meeting the requirements of Section 10 of the Securities Act of\n1933, as amended.\n EAGLE FINANCIAL SERVICES, INC.\n KEY STATISTICS (unaudited)\n                                                              For the Three Months Ended\n (Dollars in thousands, except per share data)                3Q26                2Q26                1Q26                4Q25                3Q25\n Net income                                                   $    4,750          $    4,981          $    3,740          $    4,334          $    5,584\n Earnings per share, basic                                    $    0.88           $    0.92           $    0.69           $    0.81           $    1.04\n Earnings per share, diluted                                  $    0.88           $    0.92           $    0.69           $    0.81           $    1.04\n Return on average total assets (annualized)                       1.01   %            1.08   %            0.81   %            0.91   %            1.10   %\n Return on average total equity (annualized)                       9.66   %            10.35  %            7.98   %            9.18   %            12.20  %\n Dividend payout ratio                                             35.23  %            33.70  %            44.93  %            38.27  %            29.81  %\n Fee revenue as a percent of total revenue( (1))                   15.03  %            14.82  %            15.64  %            17.86  %            15.81  %\n Net interest margin (annualized)( (2))                            3.95   %            3.86   %            3.63   %            3.61   %            3.58   %\n Yield on average earning assets (annualized)                      5.64   %            5.54   %            5.44   %            5.45   %            5.39   %\n Rate on average interest-bearing liabilities (annualized)         2.55   %            2.53   %            2.64   %            2.71   %            2.82   %\n Net interest spread                                               3.09   %            3.01   %            2.8    %            2.74   %            2.57   %\n Tax equivalent adjustment to net interest income             $    17             $    18             $    20             $    26             $    25\n Non-interest income to average assets                             1.13   %            1.86   %            1.07   %            1.12   %            1.02   %\n Non-interest expense to average assets                            3.44   %            3.37   %            3.09   %            3.24   %            2.83   %\n Efficiency ratio((3))                                             68.76  %            70.29  %            67.97  %            70.39  %            64.06  %\n\n (1) Fee revenue as a percentage of total revenue is calculated by dividing the\n sum of wealth management fees, service charges on deposit accounts and other\n service charges and fees by the sum of net interest income and non-interest\n income.\n\n (2) Non-GAAP financial measure - The annualized net interest margin is\n calculated by dividing tax equivalent net interest income by total average\n earning assets. Tax equivalent interest income is calculated by grossing up\n interest income for the amounts that are non-taxable (i.e., municipal income)\n then subtracting interest expense. The rate utilized is 21%.  Please refer to\n the \"Reconciliation of Tax-Equivalent Net Interest Income\" table for the\n quarterly tax equivalent net interest income and the reconciliation of net\n interest income to tax equivalent net interest income. The Company's net\n interest margin is a common measure used by the financial services industry to\n determine how profitable earning assets are funded. Because the Company earns\n a fair amount of nontaxable interest income due to tax-exempt loan balances,\n net interest income for the ratio is calculated on a tax equivalent basis as\n described above.\n\n (3) Non-GAAP financial measure - The efficiency ratio is not a measurement\n under accounting principles generally accepted in the United States. It is\n calculated by dividing non-interest expense less merger-related expenses,\n gain/loss on other real estate owned and gain/loss on repossessed assets by\n the sum of tax equivalent net interest income and non-interest income\n excluding gains and losses on the investment portfolio, loss on sale of other\n bank premises and equipment and gain on sale of other assets. The tax rate\n utilized is 21%. The Company calculates this ratio in order to evaluate its\n overhead structure or how effectively it is operating. An increase in the\n ratio from period to period indicates the Company is losing a larger\n percentage of its income to expenses. The Company believes that the efficiency\n ratio is a reasonable measure of profitability. Please refer to the\n \"Reconciliation of Efficiency Ratio\" table for additional information.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n SELECTED FINANCIAL DATA BY QUARTER (unaudited)\n (Dollars in thousands, except per share data)           3Q26                 2Q26                 1Q26                 4Q25                 3Q25\n BALANCE SHEET RATIOS\n Loans to deposits                                            94.38      %         93.60      %         91.28      %         91.65      %         88.21      %\n Average interest-earning assets to average-interest          150.46     %         150.25     %         146.04     %         147.54     %         155.33     %\n bearing liabilities\n PER SHARE DATA\n Dividends                                               $    0.31            $    0.31            $    0.31            $    0.31            $    0.31\n Book value                                                   36.08                35.83                35.16                35.14                34.52\n Tangible book value                                          36.08                35.83                35.16                35.14                34.52\n SHARE PRICE DATA\n Closing price                                           $    45.30           $    41.46           $    34.98           $    39.80           $    37.83\n Diluted earnings multiple((1))                               12.87                11.27                12.67                12.28                9.09\n Book value multiple((2))                                     1.26                 1.16                 0.99                 1.13                 1.10\n COMMON STOCK DATA\n Outstanding shares at end of period                          5,413,262            5,411,615            5,412,376            5,374,205            5,376,346\n Weighted average shares outstanding                          5,411,632            5,412,016            5,412,021            5,376,088            5,376,346\n Weighted average shares outstanding, diluted                 5,411,632            5,412,016            5,412,021            5,376,088            5,376,346\n CREDIT QUALITY\n Net charge-offs (recoveries) to average loans                0.07       %         0.15       %         (0.00)     %         0.02       %         0.16       %\n (annualized)\n Total non-performing loans to total loans ((3))              1.03       %         1.08       %         1.01       %         0.98       %         0.91       %\n Total non-performing assets to total assets( (4))            0.86       %         0.89       %         0.80       %         0.77       %         0.74       %\n Non-accrual loans to:\n Total loans                                                  1.02       %         1.08       %         1.01       %         0.98       %         0.90       %\n Total assets                                                 0.84       %         0.87       %         0.80       %         0.76       %         0.68       %\n Allowance for credit losses to:\n Total loans                                                  1.21       %         1.22       %         1.19       %         1.04       %         1.01       %\n Non-performing assets ((4))                                  115.87     %         111.16     %         117.67     %         104.98     %         103.81     %\n Non-accrual loans                                            118.49     %         113.38     %         117.78     %         106.40     %         112.48     %\n NON-PERFORMING ASSETS:\n Loans delinquent over 90 days and still accruing        $    104             $    20              $    13              $    60              $    91\n Non-accrual loans                                            15,641               16,146               14,711               14,398               13,167\n Other real estate owned and repossessed assets               250                  302                  —                    135                  1,009\n NET LOAN CHARGE-OFFS (RECOVERIES):\n Loans charged off                                       $    1,095           $    2,269           $    155             $    318             $    2,417\n (Recoveries)                                                 (61)                 (42)                 (189)                (81)                 (117)\n Net charge-offs (recoveries)                                 1,034                2,227                (34)                 237                  2,300\n PROVISION FOR CREDIT LOSSES ON                          $    1,261           $    3,207           $    1,972           $    747             $    1,131\n LOANS\n ALLOWANCE FOR CREDIT LOSSES ON                          $    18,533          $    18,306          $    17,326          $    15,320          $    14,810\n LOANS\n\n (1) The diluted earnings multiple (or price earnings ratio) is calculated by\n dividing the period-end closing market price per share by annualized diluted\n earnings per share for the quarter. The diluted earnings multiple is a measure\n of how much an investor may be willing to pay for $1.00 of the Company's\n earnings.\n\n (2) The book value multiple (or price to book ratio) is calculated by dividing\n the period's closing market price per share by the period's book value per\n share. The book value multiple is a measure used to compare the Company's\n market value per share to its book value per share.\n\n (3) Non-performing loans include non-accrual loans and loans 90 days or more\n past due and still accruing interest.\n\n (4) Non-performing assets include non-accrual loans, loans 90 days or more\n past due and still accruing interest, repossessed assets and other real estate\n owned (OREO) acquired through foreclosure.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n CONSOLIDATED BALANCE SHEETS\n                                                        As of:\n (Dollars in thousands)                                 Unaudited                  Unaudited                  Unaudited                  *                          Unaudited\n                                                        09/30/2026                 06/30/2026                 03/31/2026                 12/31/2025                 09/30/2025\n Assets\n Cash and due from banks                                $       15,020             $       18,281             $       14,500             $       13,942             $       15,558\n Interest-bearing deposits with other institutions              104,519                    71,169                     94,974                     103,984                    189,119\n Federal funds sold                                             42,752                     54,542                     80,293                     99,268                     63,452\n Securities available for sale, at fair value                   104,946                    114,341                    117,245                    123,329                    125,165\n Loans held for sale                                            623                        5,974                      5,214                      4,786                      3,479\n Loans, net of allowance for credit losses                      1,513,409                  1,481,045                  1,441,533                  1,457,757                  1,445,118\n Bank premises and equipment, net                               14,952                     14,974                     14,911                     14,906                     14,878\n Bank owned life insurance                                      32,573                     32,293                     32,004                     31,720                     31,440\n Other assets                                                   41,671                     54,746                     37,686                     38,934                     44,264\n Total assets                                           $       1,870,465          $       1,847,365          $       1,838,360          $       1,888,626          $       1,932,473\n Liabilities and Shareholders' Equity\n Liabilities\n Deposits:\n Noninterest bearing demand deposits                    $       453,481            $       463,086            $       455,107            $       432,171            $       521,149\n Savings and interest bearing demand deposits                   730,580                    720,714                    728,322                    728,545                    687,530\n Time deposits                                                  439,185                    418,135                    414,790                    446,644                    446,369\n Total deposits                                         $       1,623,246          $       1,601,935          $       1,598,219          $       1,607,360          $       1,655,048\n Federal funds purchased                                        —                          11                         —                          —                          101\n Federal Home Loan Bank advances, long-term                     —                          —                          —                          40,000                     40,000\n Subordinated debt, net                                         29,630                     29,613                     29,596                     29,579                     29,562\n Other liabilities                                              22,302                     21,901                     20,219                     22,848                     22,181\n Total liabilities                                      $       1,675,178          $       1,653,460          $       1,648,034          $       1,699,787          $       1,746,892\n\n Commitments and contingent liabilities\n\n Shareholders' Equity\n Preferred stock, $10 par value                                 —                          —                          —                          —                          —\n Common stock, $2.50 par value                                  13,316                     13,311                     13,311                     13,264                     13,260\n Surplus                                                        65,654                     65,189                     64,802                     64,720                     64,458\n Retained earnings                                              124,551                    121,481                    118,178                    116,115                    113,448\n Accumulated other comprehensive (loss)                         (8,234)                    (6,076)                    (5,965)                    (5,260)                    (5,585)\n Total shareholders' equity                             $       195,287            $       193,905            $       190,326            $       188,839            $       185,581\n Total liabilities and shareholders' equity             $       1,870,465          $       1,847,365          $       1,838,360          $       1,888,626          $       1,932,473\n\n * Derived from audited consolidated financial statements.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n LOAN DATA (unaudited)\n                                                   As of:\n (Dollars in thousands)                            9/30/2026                 6/30/2026                 3/31/2026                 12/31/2025                 9/30/2025\n Mortgage real estate loans:\n    Construction & Secured by Farmland             $      96,150             $      95,454             $      82,594             $       82,336             $      84,467\n    HELOCs                                                60,024                    59,973                    58,784                     58,640                    54,549\n    Residential First Lien - Investment                   104,664                   107,456                   107,084                    107,308                   103,942\n    Residential First Lien - Owner Occupied               194,889                   177,739                   176,378                    178,806                   178,725\n    Residential Junior Liens                              10,553                    10,117                    10,775                     10,724                    10,497\n    Commercial - Owner Occupied                           355,269                   329,817                   313,161                    298,853                   290,931\n    Commercial -  Non-Owner Occupied &                389,986                   397,617                   389,878                    398,926                   398,076\n     Multifamily\n Commercial and industrial loans:\n    BHG loans                                             1,432                     1,713                     2,118                      2,344                     2,637\n    SBA PPP loans                                         —                         —                         —                          4                         10\n    Other commercial and industrial loans                 123,857                   116,346                   99,170                     110,876                   100,777\n Marine loans                                             152,352                   159,246                   170,217                    175,639                   185,938\n Triad Loans                                              19,564                    20,291                    20,789                     21,324                    21,856\n Consumer loans                                           7,151                     7,761                     9,707                      7,418                     7,566\n Overdrafts                                               313                       463                       343                        318                       297\n Other loans                                              12,272                    11,540                    12,572                     13,946                    13,895\n Total loans                                       $      1,528,476          $      1,495,533          $      1,453,570          $       1,467,462          $      1,454,163\n Net deferred loan costs and premiums                     3,466                     3,818                     5,289                      5,615                     5,765\n Allowance for credit losses on loans                     (18,533)                  (18,306)                  (17,326)                   (15,320)                  (14,810)\n Net loans                                         $      1,513,409          $      1,481,045          $      1,441,533          $       1,457,757          $      1,445,118\n\n \n EAGLE FINANCIAL SERVICES, INC.\n CONSOLIDATED STATEMENTS OF INCOME (unaudited)\n                                                                        For The Three Months Ended\n (Dollars in thousands, except per share data)                          9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n Interest and Dividend Income\n Interest and fees on loans                                             $      22,745          $      21,744          $      20,713          $       21,268          $      20,722\n Interest on federal funds sold                                                88                     176                    109                     54                     55\n Interest and dividends on securities available for sale:\n Taxable interest income                                                       1,087                  1,188                  1,230                   1,274                  1,293\n Interest income exempt from federal income taxes                              —                      —                      —                       —                      —\n Dividends                                                                     11                     67                     76                      61                     60\n Interest on deposits in banks                                                 1,287                  1,200                  1,698                   2,098                  3,803\n Total interest and dividend income                                     $      25,218          $      24,375          $      23,826          $       24,755          $      25,933\n Interest Expense\n Interest on deposits                                                   $      7,235           $      7,050           $      7,225           $       7,526           $      7,886\n Interest on federal funds purchased                                           —                      —                      —                       —                      —\n Interest on Federal Home Loan Bank advances                                   —                      —                      344                     494                    494\n Interest on subordinated debt                                                 354                    355                    354                     354                    354\n Total interest expense                                                 $      7,589           $      7,405           $      7,923           $       8,374           $      8,734\n Net interest income                                                    $      17,629          $      16,970          $      15,903          $       16,381          $      17,199\n Provision For Credit Losses                                                   1,050                  3,503                  1,961                   688                    1,112\n Net interest income after provision for credit losses                  $      16,579          $      13,467          $      13,942          $       15,693          $      16,087\n Noninterest Income\n Wealth management fees                                                 $      1,744           $      2,197           $      1,782           $       2,299           $      1,827\n Service charges on deposit accounts                                           606                    563                    556                     574                    558\n Other service charges and fees                                                1,096                  1,028                  921                     1,009                  1,151\n Gain (loss) on the sale and disposal of bank premises and equipment           7                      (4)                    —                       (1)                    (2)\n (Loss) on the sale of AFS securities                                          —                      —                      —                       —                      —\n Gain on sale of loans held for sale                                           1,255                  646                    1,012                   830                    1,012\n Gain on sale of other assets                                                  —                      3,486                  —                       —                      —\n Small business investment company income                                      213                    110                    266                     40                     58\n Bank owned life insurance income                                              280                    289                    284                     280                    268\n Other operating income                                                        95                     275                    107                     324                    293\n Total noninterest income                                               $      5,296           $      8,590           $      4,928           $       5,355           $      5,165\n Noninterest Expenses\n Salaries and employee benefits                                         $      9,627           $      9,212           $      8,229           $       9,462           $      8,717\n Occupancy expenses                                                            696                    613                    666                     663                    691\n Equipment expenses                                                            495                    451                    462                     442                    437\n Advertising and marketing expenses                                            264                    295                    191                     209                    317\n Stationery and supplies                                                       39                     30                     46                      20                     37\n ATM network fees                                                              330                    326                    327                     324                    327\n Other real estate owned expense (gain), net                                   —                      —                      (5)                     20                     —\n Loss on the sale of other real estate owned                                   —                      —                      —                       51                     —\n Loss on sale of repossessed assets                                            15                     —                      39                      169                    —\n FDIC assessment                                                               200                    169                    227                     200                    172\n Computer software expense                                                     432                    422                    354                     373                    389\n Bank franchise tax                                                            530                    530                    481                     388                    388\n Professional fees                                                             716                    551                    604                     723                    493\n Data processing fees                                                          553                    591                    486                     558                    469\n Merger-related expenses                                                       342                    —                      —                       —                      —\n Other operating expenses                                                      1,888                  2,341                  2,105                   1,937                  1,907\n Total noninterest expenses                                             $      16,127          $      15,531          $      14,212          $       15,539          $      14,344\n Income before income taxes                                             $      5,748           $      6,526           $      4,658           $       5,509           $      6,908\n Income Tax Expense                                                            998                    1,545                  918                     1,175                  1,324\n Net income                                                             $      4,750           $      4,981           $      3,740           $       4,334           $      5,584\n Earnings Per Share\n Net income per common share, basic                                     $      0.88            $      0.92            $      0.69            $       0.81            $      1.04\n Net income per common share, diluted                                   $      0.88            $      0.92            $      0.69            $       0.81            $      1.04\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Average Balances, Income and Expenses, Yields and Rates (unaudited)\n                                               Three Months Ended\n                                               September 30, 2026                                                June 30, 2026                                                     September 30, 2025\n                                                                        Interest                                                          Interest                                                          Interest\n (Dollars in thousands)                        Average                  Income/                Average           Average                  Income/                Average           Average                  Income/                Average\n Assets:                                       Balance                  Expense                Rate              Balance                  Expense                Rate              Balance                  Expense                Rate\n Securities:\n Taxable                                       $     109,875            $      1,098                 3.96  %     $     116,041            $      1,255                 4.34  %     $     124,891            $      1,353                 4.30  %\n Tax-Exempt( (1))                                    —                         —                     —     %           —                         —                     —     %           —                         —                     —     %\n Total Securities                              $     109,875            $      1,098                 3.96  %     $     116,041            $      1,255                 4.34  %     $     124,891            $      1,353                 4.30  %\n Loans:\n Taxable                                       $     1,492,680          $      22,680                6.03  %     $     1,478,699          $      21,675                5.88  %     $     1,423,586          $      20,626                5.75  %\n Non-accrual                                         15,358                    —                     —     %           15,113                    —                     —     %           15,058                    —                     —     %\n Tax-Exempt( (1))                                    6,388                     82                    5.09  %           7,002                     87                    4.98  %           9,454                     121                   5.08  %\n Total Loans                                   $     1,514,426          $      22,762                5.96  %     $     1,500,814          $      21,762                5.82  %     $     1,448,098          $      20,747                5.68  %\n Federal funds sold and interest-bearing             149,722                   1,375                 3.64  %           147,832                   1,376                 3.73  %           336,562                   3,858                 4.55  %\n deposits in other banks\n Total earning assets                          $     1,774,023          $      25,235                5.64  %     $     1,764,687          $      24,393                5.54  %     $     1,909,551          $      25,958                5.39  %\n Allowance for credit losses on loans                (18,255)                                                          (17,761)                                                          (15,699)\n Total non-earning assets                            103,104                                                           103,429                                                           118,550\n Total assets                                  $     1,858,872                                                   $     1,850,355                                                   $     2,012,402\n\n Liabilities and Shareholders' Equity:\n Interest-bearing deposits:\n NOW accounts                                  $     302,243            $      1,679                 2.20  %     $     313,794            $      1,684                 2.15  %     $     314,742            $      1,863                 2.35  %\n Money market accounts                               304,800                   1,714                 2.23  %           291,872                   1,578                 2.17  %           267,787                   1,478                 2.19  %\n Savings accounts                                    119,006                   32                    0.11  %           122,424                   32                    0.10  %           125,512                   35                    0.11  %\n Time deposits:\n $250,000 and more                                   173,413                   1,613                 3.69  %           169,195                   1,589                 3.77  %           170,124                   1,761                 4.11  %\n Less than $250,000                                  249,986                   2,197                 3.49  %           247,613                   2,167                 3.51  %           281,617                   2,749                 3.87  %\n Total interest-bearing deposits               $     1,149,448          $      7,235                 2.50  %     $     1,144,898          $      7,050                 2.47  %     $     1,159,782          $      7,886                 2.70  %\n Federal funds purchased                             —                         —                     —     %           —                         —                     —     %           7                         —               N/M\n Federal Home Loan Bank advances                     —                         —                     —     %           —                         —                     —     %           40,000                    494                   4.90  %\n Subordinated debt, net                              29,619                    354                   4.74  %           29,602                    355                   4.81  %           29,552                    354                   4.75  %\n Total interest-bearing liabilities            $     1,179,067          $      7,589                 2.55  %     $     1,174,500          $      7,405                 2.53  %     $     1,229,341          $      8,734                 2.82  %\n Noninterest-bearing liabilities:\n Demand deposits                                     461,525                                                           460,963                                                           579,568\n Other Liabilities                                   23,208                                                            21,852                                                            21,863\n Total liabilities                             $     1,663,800                                                   $     1,657,315                                                   $     1,830,772\n Shareholders' equity                                195,072                                                           193,040                                                           181,630\n Total liabilities and shareholders' equity    $     1,858,872                                                   $     1,850,355                                                   $     2,012,402\n Net interest income ((1))                                              $      17,646                                                     $      16,988                                                     $      17,224\n Net interest spread                                                                                 3.09  %                                                           3.01  %                                                           2.57  %\n Interest expense as a percent of average                                                            1.70  %                                                           1.68  %                                                           1.81  %\n earning assets\n Net interest margin( (1))                                                                           3.95  %                                                           3.86  %                                                           3.58  %\n\n N/M - Not meaningful\n\n (1) Non-GAAP financial measure - Income and yields are reported on\n tax-equivalent basis using a federal tax rate of 21%. Please refer to the\n \"Reconciliation of Tax-Equivalent Net Interest Income\" table for additional\n information.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of Tax-Equivalent Net Interest Income (unaudited)\n                                                        Three Months Ended\n (Dollars in thousands)                                 9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n GAAP Financial Measurements:\n Interest Income - Loans                                $      22,745          $      21,744          $      20,713          $       21,268          $      20,722\n Interest Income - Securities and Other Interest-              2,473                  2,631                  3,113                   3,487                  5,211\n Earnings Assets\n Interest Expense - Deposits                                   7,235                  7,050                  7,225                   7,526                  7,886\n Interest Expense - Other Borrowings                           354                    355                    698                     848                    848\n Total Net Interest Income (GAAP)                       $      17,629          $      16,970          $      15,903          $       16,381          $      17,199\n Non-GAAP Financial Measurements:\n Add:  Tax Benefit on Tax-Exempt Interest Income -      $      17              $      18              $      20              $       26              $      25\n Loans\n Add:  Tax Benefit on Tax-Exempt Interest Income -             —                      —                      —                       —                      —\n Securities\n Total Tax Benefit on Tax-Exempt Interest Income        $      17              $      18              $      20              $       26              $      25\n Tax-Equivalent Net Interest Income (non-GAAP)          $      17,646          $      16,988          $      15,923          $       16,407          $      17,224\n\n Net interest margin ((1))                                     3.94    %              3.86    %              3.63    %               3.60    %              3.57    %\n Net interest margin, tax-equivalent ((2))                     3.95    %              3.86    %              3.63    %               3.61    %              3.58    %\n\n (1) The annualized net interest margin is calculated by dividing net interest\n income by total average earning assets. The Company's net interest margin is a\n common measure used by the financial service industry to determine how\n profitable earning assets are funded.\n\n (2) Non-GAAP financial measure- The annualized net interest margin is\n calculated by dividing tax equivalent net interest income by total average\n earning assets. Tax equivalent interest income is calculated by grossing up\n interest income for the amounts that are non-taxable (i.e., municipal income)\n then subtracting interest expense. The rate utilized is 21%. The Company's net\n interest margin is a common measure used by the financial service industry to\n determine how profitable earning assets are funded. Because the Company earns\n a fair amount of nontaxable interest income due to tax-exempt loan balances,\n net interest income for the ratio is calculated on a tax equivalent basis as\n described above.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of Efficiency Ratio (unaudited)\n                                                            Three Months Ended\n  (Dollars in thousands)                                    9/30/2026              6/30/2026              3/31/2026              12/31/2025              9/30/2025\n Summary of Operating Results:\n Noninterest expenses (GAAP)                                $      16,127          $      15,531          $      14,212          $       15,539          $      14,344\n Less: Loss on other real estate owned                             —                      —                      —                       51                     —\n Less: Loss on sale of repossessed assets                          15                     —                      39                      169                    —\n Less: Merger-related expenses                                     342                    —                      —                       —                      —\n Adjusted noninterest expenses (non-GAAP)                   $      15,770          $      15,531          $      14,173          $       15,319          $      14,344\n\n Net interest income                                               17,629                 16,970                 15,903                  16,381                 17,199\n\n Noninterest income (GAAP)                                         5,296                  8,590                  4,928                   5,355                  5,165\n Less: Gain (loss) on the sale and disposal of premises            7                      (4)                    —                       (1)                    (2)\n and equipment\n Less: Gain on the sale of other assets                            —                      3,486                  —                       —                      —\n Adjusted noninterest income (non-GAAP)                     $      5,289           $      5,108           $      4,928           $       5,356           $      5,167\n Tax equivalent adjustment ((1))                                   17                     18                     20                      26                     25\n Total net interest income and noninterest income,          $      22,935          $      22,096          $      20,851          $       21,763          $      22,391\n adjusted (non-GAAP)\n\n Efficiency ratio                                                  68.76   %              70.29   %              67.97   %               70.39   %              64.06   %\n\n (1) Non-GAAP financial measure -Includes tax-equivalent adjustments on loans\n and securities using the federal statutory tax rate of 21%.\n\n \n EAGLE FINANCIAL SERVICES, INC.\n Reconciliation of GAAP to Non-GAAP Performance Highlights (unaudited)\n                                                     Three Months Ended\n (dollars in thousands except for per share data)    9/30/2026              6/30/2026               3/31/2026              12/31/2025              9/30/2025\n GAAP Financial Measurements:\n GAAP Net income                                     $      4,750           $      4,981            $      3,740           $       4,334           $      5,584\n Adjustments to net income:\n (Gain) on sale of other assets                             —                      (3,486)                 —                       —                      —\n Merger-related expenses                                    342                    —                       —                       —                      —\n Tax effect of adjustments to net income                    (72)                   732                     —                       —                      —\n Non-GAAP Adjusted Net income                        $      5,020           $      2,227            $      3,740           $       4,334           $      5,584\n\n GAAP Noninterest income                             $      5,296           $      8,590            $      4,928           $       5,355           $      5,165\n Adjustments to noninterest income:\n Loss on sales of securities                                —                      —                       —                       —                      —\n (Gain) on sale of other assets                             —                      (3,486)                 —                       —                      —\n Non-GAAP Adjusted Noninterest income                $      5,296           $      5,104            $      4,928           $       5,355           $      5,165\n\n GAAP Noninterest expense                            $      16,127          $      15,531           $      14,212          $       15,539          $      14,344\n Adjustments to noninterest expense:\n Merger-related expenses                                    342                    —                       —                       —                      —\n Non-GAAP Adjusted Noninterest expense               $      15,785          $      15,531           $      14,212          $       15,539          $      14,344\n\n Earnings per share, basic and diluted, GAAP         $      0.88            $      0.92             $      0.69            $       0.81            $      1.04\n Effect of adjustments to net income                        0.05                   (0.51)                  —                       —                      —\n Non-GAAP Adjusted Earnings per share, basic and     $      0.93            $      0.41             $      0.69            $       0.81            $      1.04\n diluted\n\n Annualized return on average equity, GAAP                  9.66    %              10.35    %              7.98    %               9.18    %              12.20   %\n Effect of adjustments to net income                        0.55    %              (5.72)   %              —       %               —       %              —       %\n Non-GAAP Adjusted Annualized return on                     10.21   %              4.63     %              7.98    %               9.18    %              12.20   %\n average equity\n\n Annualized return on average assets, GAAP                  1.01    %              1.08     %              0.81    %               0.91    %              1.10    %\n Effect of adjustments to net income                        0.06    %              (0.60)   %              —       %               —       %              —       %\n Non-GAAP Adjusted Annualized return on                     1.07    %              0.48     %              0.81    %               0.91    %              1.10    %\n average assets\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2026-third-quarter-financial-results-and-quarterly-dividend-302917403.html\n(https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2026-third-quarter-financial-results-and-quarterly-dividend-302917403.html)\n\nSOURCE Eagle Financial Services, Inc.\n\n\n\nKathleen J. Chappell, Executive Vice President and CFO, 540-955-2510, kchappell@bankofclarke.com\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS471471/EFSI-updated-logo.jpg?id=OA3035325\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-10-22T20:10:00.733532376Z","server_sent_at_ms":1792699800733},"received_at":"2026-10-22T20:10:00.795Z","source_url":"https://www.prnewswire.com/news-releases/eagle-financial-services-inc-announces-2026-third-quarter-financial-results-and-quarterly-dividend-302917403.html"},"analysis":{"id":"165659","press_release_id":"177721","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["adjusted net income down 10.1% YoY on rising compensation costs","nonperforming assets up 12.1% YoY with rising specific reserves on multifamily and marine credits","deposit growth partially reliant on $15.8 million increase in brokered CDs","pending merger introduces integration and approval risk"],"eventType":"earnings","narrative":"Eagle Financial Services reported Q3 2026 net income of $4.75 million ($0.88 EPS), with adjusted net income of $5.0 million ($0.93 EPS) down 10.1% year-over-year on higher salary and employee benefit expenses.\n\nThe quarter showed underlying momentum: net interest margin expanded to 3.95% from 3.86% in Q2, net loans grew $32.4 million (2.2%) QoQ, and nonperforming assets declined slightly linked-quarter.\n\nThe Board declared a $0.31 quarterly dividend payable November 13, 2026, and the company continues to advance its proposed merger with John Marshall Bancorp, incurring $342 thousand of merger-related expenses during the quarter.\n\nCredit costs remain elevated relative to a year ago, with specific reserves rising on a nonaccrual multifamily relationship and the allowance ratio at 1.21% of loans versus 1.01% a year ago.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"NIM expansion and loan growth offset by comp-driven earnings decline ahead of John Marshall merger close."},"keyFigures":{"eps":0.88,"revenue":"$22.9 million","guidance":"","customDimensions":{"deposits":1623000000,"net_loans":1513000000,"net_income":4750000,"adjusted_eps":0.93,"total_assets":1870000000,"roe_annualized":"9.66%","merger_expenses":342000,"efficiency_ratio":"68.76%","dividend_per_share":0.31,"adjusted_net_income":5020000,"net_interest_income":17629000,"net_interest_margin":"3.95%","provision_for_credit_losses":1261000,"adjusted_net_income_change_qoq":"+125.4%","adjusted_net_income_change_yoy":"-10.1%"}},"quotedText":"We are entering this combination from a position of strength, and we believe bringing together two strong community banking franchises creates an opportunity to deliver meaningful long-term value for our shareholders.","namedEntities":{"people":[{"name":"Brandon Lorey","role":"President and CEO"},{"name":"Kathleen J. Chappell","role":"Executive Vice President and CFO"}],"products":[],"companies":[{"name":"Eagle Financial Services, Inc.","ticker":"EFSI","relationship":"filer"},{"name":"Bank of Clarke","relationship":"subsidiary"},{"name":"John Marshall Bancorp, Inc.","relationship":"merger partner"},{"name":"Bearing Insurance Group, LLC","relationship":"divested asset"}],"dollarAmounts":[{"amount":"$4,750","context":"Q3 2026 consolidated net income (thousands)"},{"amount":"$0.31","context":"quarterly dividend per common share"},{"amount":"$342 thousand","context":"pre-tax merger-related expenses in Q3 2026"},{"amount":"$32.4 million","context":"linked-quarter net loan growth"},{"amount":"$21.3 million","context":"linked-quarter deposit growth"},{"amount":"$3.5 million","context":"pre-tax gain on sale of Bearing interest in Q2 2026"},{"amount":"$226.0 million","context":"uninsured deposits at September 30, 2026"}]},"materialImpact":{"score":3,"reasoning":"Quarterly earnings release for a small-cap bank holding company: adjusted EPS of $0.93 fell 10.1% YoY on higher compensation costs, though NIM expanded to 3.95%, loans grew 2.2% QoQ, and a $0.31 dividend was declared amid a pending merger with John Marshall Bancorp."},"tickerRelevance":{"others":[],"primary":"EFSI"},"globalImportance":22,"audienceRelevance":18,"eventTypeSecondary":["dividend"],"importanceComponents":{"tickerTier":"micro-cap regional bank","eventGravity":"routine quarterly earnings plus dividend","mergerContext":"pending acquisition of John Marshall Bancorp adds strategic relevance","householdBrandBoost":0}},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"mixed","material_impact_score":3,"narrative":"Eagle Financial Services reported Q3 2026 net income of $4.75 million ($0.88 EPS), with adjusted net income of $5.0 million ($0.93 EPS) down 10.1% year-over-year on higher salary and employee benefit expenses.\n\nThe quarter showed underlying momentum: net interest margin expanded to 3.95% from 3.86% in Q2, net loans grew $32.4 million (2.2%) QoQ, and nonperforming assets declined slightly linked-quarter.\n\nThe Board declared a $0.31 quarterly dividend payable November 13, 2026, and the company continues to advance its proposed merger with John Marshall Bancorp, incurring $342 thousand of merger-related expenses during the quarter.\n\nCredit costs remain elevated relative to a year ago, with specific reserves rising on a nonaccrual multifamily relationship and the allowance ratio at 1.21% of loans versus 1.01% a year ago.","key_figures":{"eps":0.88,"revenue":"$22.9 million","guidance":"","customDimensions":{"deposits":1623000000,"net_loans":1513000000,"net_income":4750000,"adjusted_eps":0.93,"total_assets":1870000000,"roe_annualized":"9.66%","merger_expenses":342000,"efficiency_ratio":"68.76%","dividend_per_share":0.31,"adjusted_net_income":5020000,"net_interest_income":17629000,"net_interest_margin":"3.95%","provision_for_credit_losses":1261000,"adjusted_net_income_change_qoq":"+125.4%","adjusted_net_income_change_yoy":"-10.1%"}},"named_entities":{"people":[{"name":"Brandon Lorey","role":"President and CEO"},{"name":"Kathleen J. Chappell","role":"Executive Vice President and CFO"}],"products":[],"companies":[{"name":"Eagle Financial Services, Inc.","ticker":"EFSI","relationship":"filer"},{"name":"Bank of Clarke","relationship":"subsidiary"},{"name":"John Marshall Bancorp, Inc.","relationship":"merger partner"},{"name":"Bearing Insurance Group, LLC","relationship":"divested asset"}],"dollarAmounts":[{"amount":"$4,750","context":"Q3 2026 consolidated net income (thousands)"},{"amount":"$0.31","context":"quarterly dividend per common share"},{"amount":"$342 thousand","context":"pre-tax merger-related expenses in Q3 2026"},{"amount":"$32.4 million","context":"linked-quarter net loan growth"},{"amount":"$21.3 million","context":"linked-quarter deposit growth"},{"amount":"$3.5 million","context":"pre-tax gain on sale of Bearing interest in Q2 2026"},{"amount":"$226.0 million","context":"uninsured deposits at September 30, 2026"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-22T20:10:08.118Z","global_importance":22,"audience_relevance":18,"importance_components":{"tickerTier":"micro-cap regional bank","eventGravity":"routine quarterly earnings plus dividend","mergerContext":"pending acquisition of John Marshall Bancorp adds strategic relevance","householdBrandBoost":0}},"durationMs":7264,"modelName":"glm-5.3-flashx"}}