EFSI

EX-99.1

2 efsi-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

EAGLE FINANCIAL SERVICES, INC. ANNOUNCES

2026 THIRD QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND

Contact:

Kathleen J. Chappell, Executive Vice President and CFO

540-955-2510

kchappell@bankofclarke.com

BERRYVILLE, VIRGINIA (October 22, 2026) – Eagle Financial Services, Inc. (NASDAQ: EFSI) (the "Company"), the holding company for Bank of Clarke ("the Bank"), announced its third quarter 2026 results. Also, on October 22, 2026, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on November 13, 2026, to shareholders of record on November 2, 2026. The following table presents selected financial performance highlights for the periods indicated:

Three Months Ended

September 30,

June 30,

September 30,

2026

2026

2025

(Dollars in thousands, except per share data)

As adjusted (1)

As adjusted (1)

Consolidated net income

$

4,750

$

5,020

$

4,981

$

2,227

$

5,584

Consolidated noninterest income

$

5,296

$

5,296

$

8,590

$

5,104

$

5,165

Consolidated noninterest expense

$

16,127

$

15,785

$

15,531

$

15,531

$

14,344

Earnings per share - basic and diluted

$

0.88

$

0.93

$

0.92

$

0.41

$

1.04

Annualized return on average equity

9.66

%

10.21

%

10.35

%

4.63

%

12.20

%

Annualized return on average assets

1.01

%

1.07

%

1.08

%

0.48

%

1.10

%

(1) Non-GAAP financial measure - Excluding the tax effected impact of merger expenses during the quarter ended September 30, 2026 and the gain on sale of other assets during the quarter ended June 30, 2026. See the "Reconciliation of GAAP to Non-GAAP Performance Highlights" table for a reconciliation of these measures to comparable measures calculated in accordance with GAAP.

Additional key highlights for the third quarter of 2026 are as follows:

• Announced a proposed strategic merger with John Marshall Bancorp, Inc. ("John Marshall"), a transformative transaction expected to enhance scale, market presence, and long-term shareholder value.

• Net loans increased by $32.4 million or 2.19% while deposits increased by $21.3 million or 1.33%, in each case compared to June 30, 2026.

• Net interest margin increased from 3.86% for the quarter ended June 30, 2026 to 3.95% for the quarter ended September 30, 2026. Net interest spread increased from 3.01% for the quarter ended June 30, 2026 to 3.09% for the quarter ended September 30, 2026.

Brandon Lorey, President and CEO, stated, "The third quarter was an important one for EFSI, with strong execution across the franchise while we also announced our proposed merger with John Marshall Bancorp. Net loans grew $32.4 million during the quarter, reflecting both strong customer demand and the continued efforts of our lending teams, while our net interest margin improved to 3.95% as the balance sheet actions we have taken over the past two years continued to deliver results. 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. I could not be prouder of our team for staying focused on our customers and communities while also taking on the additional work required to prepare for what is ahead."

Summary

Net income for the quarters ended September 30, 2026 and June 30, 2026 was $4.8 million and $5.0 million, respectively. Net income was $5.6 million for the quarter ended September 30, 2025. During the third quarter of 2026, the Company incurred $342 thousand of pre-tax merger-related expenses related to the announced merger with John Marshall in September 2026. During the second quarter of 2026, the Company sold its membership interest in Bearing Insurance Group, LLC ("Bearing") to an unaffiliated third party and recognized a pre-tax gain of $3.5 million, which was recorded in gain on sale of other assets in the consolidated statements of income. Excluding the tax-effected impact of the merger-related expenses incurred during the third quarter of 2026 and the gain on the sale of Bearing recognized during the second quarter of 2026, adjusted net income for the quarters ended September 30, 2026 and June 30, 2026, were $5.0 million and $2.2 million, respectively. Adjusted net income is a non-GAAP financial measure. Please refer to the "Reconciliation of GAAP to Non-GAAP Performance Highlights" table for additional information.

For the quarter ended September 30, 2026, adjusted net income increased $2.8 million, or 125.4%, compared to the quarter ended June 30, 2026, and decreased $564 thousand, or 10.1%, compared to the quarter ended September 30, 2025. The increase from the quarter ended June 30, 2026 was primarily driven by a lower provision for credit losses. The decrease compared to the quarter ended September 30, 2025 was primarily attributable to higher salary and employee benefit expenses. Additional