1. EFSI reported a net loss of $6.97 million in Q1 2025. 2. Noninterest income declined, driven by a loss on securities sales. 3. The company announced a quarterly dividend of $0.31 per share. 4. Core deposit growth totaled $42.2 million, reducing borrowings. 5. Two large loan relationships were placed in nonaccrual status.
Significant loss and decrease in net income indicate financial stress, historically affecting stock performance.
The reported losses and dividend announcement directly influence investor sentiment and stock price.
Immediate investor reaction expected due to quarterly earnings report and subsequent stock performance.
BERRYVILLE, Va., April 25, 2025 /PRNewswire/ -- Eagle Financial Services, Inc. (NASDAQ: EFSI) (the "Company"), the holding company for Bank of Clarke, whose divisions include Bank of Clarke Wealth Management, announced its first quarter 2025 results.
On April 23, 2025, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on May 16, 2025, to shareholders of record on May 5, 2025. The following table presents selected financial performance highlights for the periods indicated:
| Three Months Ended | March 31, 2025 | December 31, 2024 | March 31, 2024 |
|---|---|---|---|
| Consolidated net income (loss) | $(6,974) | $2,842 | $6,186 |
| Consolidated noninterest income (loss) | $(8,554) | $3,871 | $8,521 |
| Earnings (loss) per share - basic and diluted | $(1.53) | $0.62 | $1.74 |
| Annualized return on average equity | (20.75)% | 8.46% | 21.10% |
| Net interest margin | 2.98% | 3.03% | 3.00% |
(1) Non-GAAP financial measure - Excluding the tax affected impact of the loss on sale of securities for the three months ended March 31, 2025 and the gain on sale of the Old Town Center ("OTC") building as a result of the executed sale-leaseback transaction for the three months ended December 31, 2024.
Total net income (loss) for the quarters ended March 31, 2025, and December 31, 2024 was $(7.0 million) and $6.2 million, respectively. Total net (loss) for the quarter ended March 31, 2025 included a loss on sale of securities of $12.4 million related to an executed balance sheet repositioning.
Total deposits increased to $1.61 billion as of March 31, 2025 when compared to December 31, 2024 deposits of $1.58 billion. The majority of this increase was due to savings and interest bearing demand deposit balances increasing by $18.3 million and noninterest bearing demand deposits increasing by $15.2 million. Year over year deposits increased $139.8 million and the majority of the growth was in time deposits.
The objective of the Company's liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors, and investors. As of March 31, 2025, the Company's liquid assets, which include cash and due from banks, interest-bearing deposits at other banks, loans with a maturity less than one year and non-pledged securities available for sale, were $412.0 million.
On April 23, 2025, the Board of Directors announced a quarterly common stock cash dividend of $0.31 per common share, payable on May 16, 2025, to shareholders of record on May 5, 2025. The Board continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.
Source: Eagle Financial Services, Inc.