News & Events zu Eagle Financial Services Inc (EFSI)EFSIEagle Financial Services Inc

EFSI Merges with John Marshall Bancorp, Loans Up $32.4 Million

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."

John Marshall and Eagle Financial Merge in $253 Million Deal

John Marshall Bancorp (JMSB) and Eagle Financial Services (EFSI) announced the signing of a definitive merger agreement that will bring together two of Virginia's most respected community banking franchises. Under the terms of the agreement, at closing, EFSI will merge with and into John Marshall in an all-stock transaction valued at approximately $253M, or $46.72 per share of EFSI common stock, based on John Marshall's closing stock price of $23.36 as of September 4. Under the terms of the definitive merger agreement, which was unanimously approved by the board of directors of John Marshall and unanimously approved by all present directors of the board of directors of EFSI, each share of EFSI common stock will be converted into the right to receive 2.0 shares of John Marshall common stock. Based on John Marshall's closing stock price of $23.36 as of September 4, the implied per share consideration is $46.72, representing an aggregate transaction value of approximately $253M and a premium of approximately 11.5% to EFSI's closing stock price of $41.90 as of the same date. Following the closing of the transaction, John Marshall expects to increase its quarterly cash dividend to $0.155 per share, which would result in a quarterly dividend equal to $0.31 per share to EFSI shareholders, equivalent to EFSI's current quarterly dividend. The combined holding company will be John Marshall Bancorp, Inc. and will be headquartered in Reston, Virginia. The banking subsidiary will be headquartered in Berryville, Virginia. The company will continue to trade on the Nasdaq Stock Market under the ticker symbol "JMSB." Both banking companies will continue to operate under their current brands, with Bank of Clarke as the brand in its legacy Shenandoah Valley markets, preserving a name that has served the community since 1881. The combined company's board of directors will consist of 12 directors, 6 from John Marshall and 6 from EFSI. Christopher Bergstrom will serve as Executive Chairman of the combined company. Cary Nelson will serve as Lead Independent Director of the combined company. The combined company will be led by a seasoned management team drawing on the strengths of both organizations. Brandon Lorey, current President and CEO of EFSI, will serve as CEO and a director of both the combined company and the banking subsidiary Kent Carstater, current CFO of John Marshall, will serve as President of the combined company and COO of the banking subsidiary. Joseph Zmitrovich, current Chief Banking Officer of EFSI, will serve as Chief Revenue Officer of the combined company and President of the banking subsidiary The transaction is expected to close early in the first quarter of 2027, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approval by the shareholders of both John Marshall and EFSI.

Net Interest Margin Increases to 3.63% in Q1

Additional key highlights for the first quarter of 2026 are as follows: Net interest margin increased from 3.61% for the quarter ended December 31, 2025 to 3.63% for the quarter ended March 31, 2026. Net interest spread increased from 2.74% for the quarter ended December 31, 2025 to 2.80% for the quarter ended March 31, 2026. Efficiency ratio decreased from 70.39% for the quarter ended December 31, 2025 to 67.97% for the quarter ended March 31, 2026. Brandon Lorey, President and CEO, stated, "Our first quarter results reflect steady progress in our core operating performance and continued improvement in several key metrics. Net interest margin increased modestly, efficiency improved from the prior quarter, and asset quality remained stable. These results demonstrate the impact of the balance sheet actions we have taken and our ongoing focus on disciplined execution. We continue to maintain solid capital and liquidity levels, which positions us to thoughtfully support our customers and communities while remaining mindful of the broader economic environment."