Executive Summary

Q4 2024 headline EPS was $1.74, up $0.77 QoQ; reported net income was $6.19M (+81% QoQ), driven by a one-time $3.9M net-of-tax gain from a sale-leaseback of the Old Town Center branch; excluding this gain, adjusted net income was $3.13M, down $0.30M QoQ but up 31% YoY .
Core trends were constructive: net interest income rose to $13.50M (+2.6% QoQ, +9.9% YoY) and net interest margin expanded to 3.03% from 2.85% YoY, supported by higher-yielding earning assets .
Balance sheet quality improved: deposits grew $29.2M QoQ to $1.58B; borrowings fell by ~$50.2M QoQ to $149.5M; uninsured deposits remained modest at ~12% of total with liquidity plus borrowing capacity exceeding uninsured deposits by ~$557.5M .
Management tone confident on executing strategic initiatives (NIM uplift, deposit growth, core fee momentum) and capital optimization, citing sale-leaseback proceeds as unlocking expansion capital .
Wall Street consensus EPS/revenue estimates were unavailable from S&P Global for this quarter, limiting formal beat/miss attribution; traders will key on core earnings trajectory, NIM stability, and credit normalization versus one-time gains [GetEstimates error; S&P Global data unavailable].

What Went Well and What Went Wrong

What Went Well

Deposit inflows and funding mix: total deposits +$29.2M QoQ to $1.58B, with savings and interest-bearing DDA +$23.7M; over 75% of deposits fully FDIC insured, uninsured deposits ~12% of total .
Lower reliance on wholesale funding: total borrowings decreased ~$50.2M QoQ; FHLB long-term advances fell to $120.0M from $170.0M; liquidity and borrowing availability together exceeded uninsured deposits by ~$557.5M .
Fee income drivers: mortgage/SBA loan sales produced $861K gains; SBIC income grew to $475K; management emphasized strategic execution yielding higher NIM, increased deposits, core loan growth, and non-interest income momentum: “effectively executed on each of our strategic initiatives” .

What Went Wrong

One-time gain masks core softness: excluding the $3.9M net-of-tax sale-leaseback gain, adjusted net income was $3.13M, slightly below Q3’s $3.42M (−$0.30M), reflecting lower noninterest income (no BOLI settlements in Q4) and higher noninterest expense .
Credit costs and asset quality: net charge-offs were $486K (vs $1.24M in Q3), still elevated versus historical run-rate, concentrated in a handful of marine loans; nonperforming assets rose slightly QoQ to $3.0M (0.16% of assets) .
Expense creep: noninterest expense +$665K QoQ (+5.2%) to $13.56M, notably salaries/benefits higher due to insurance costs and incentive accruals as goals were surpassed; efficiency ratio worsened to 74.58% from 71.34% in Q3 .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Income ($USD Thousands)	$2,395	$3,185	$3,424	$6,186
EPS (Diluted, $)	$0.68	$0.89	$0.97	$1.74
Net Interest Income ($USD Thousands)	$12,280	$12,156	$13,157	$13,499
Noninterest Income ($USD Thousands)	$3,662	$4,305	$5,251	$8,521
Provision for Credit Losses ($USD Thousands)	$366	$181	$1,544	$351
Net Interest Margin (%)	2.85%	2.92%	3.03%	3.03%
ROA (%)	0.53%	0.72%	0.75%	1.32%
ROE (%)	9.33%	11.76%	11.99%	21.10%
Efficiency Ratio (%)	83.01%	77.00%	71.34%	74.58%

Note: Q3 press release referenced NIM of 2.88%, while the Q4 “Key Statistics” table shows 3.03% for Q3 (company notes non-GAAP tax-equivalent methodology); we rely on the Q4 consolidated table for consistency and disclose the discrepancy .

Segment/Composition (Selected Loan Categories, End of Period $USD Thousands)

Loan Category	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Marine Loans	$251,168	$236,890	$225,902	$210,095
Commercial – Non-Owner Occupied & Multifamily	$348,879	$352,892	$357,351	$367,680
Commercial – Owner Occupied	$251,456	$257,675	$273,249	$272,236
Residential First Lien – Owner Occupied	$178,180	$187,807	$198,570	$194,065
Residential First Lien – Investor	$117,431	$112,790	$106,323	$105,910
Other Commercial & Industrial	$102,672	$102,345	$107,320	$106,749

KPIs and Balance Sheet

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Deposits ($USD Thousands)	$1,506,322	$1,488,584	$1,545,936	$1,575,156
Loans, Net ($USD Thousands)	$1,448,193	$1,433,920	$1,468,025	$1,452,022
Allowance for Credit Losses ($USD Thousands)	$14,493	$15,014	$15,303	$15,027
ACL / Total Loans (%)	0.99%	1.04%	1.03%	1.02%
Nonperforming Assets / Total Assets (%)	0.34%	0.18%	0.13%	0.16%
Net Charge-offs / Avg Loans (%)	0.03%	(0.02%)	0.08%	0.03%
Fee Revenue as % of Total Revenue (%)	17.32%	17.57%	17.11%	12.79%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share ($)	Q4 2024	$0.31 (Q3 2024)	$0.31 (announced Jan 22, 2025; payable Feb 14, 2025)	Maintained
Revenue / Margins / OpEx / OI&E / Tax rate	Q4 2024	Not provided	Not provided	N/A

No formal quantitative guidance was issued for revenue, margins, OpEx, OI&E, or tax rate in Q4 2024 disclosures .

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 2024; themes below reflect management disclosures across press releases for Q2–Q4.

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Net Interest Margin & Earning Asset Yield	NIM dipped to 2.81% in Q2 due to marine prepayment fee dynamics; recovered to 2.88% in Q3 with higher asset yields	NIM at 3.03%; YE vs prior year improvement on higher-yield originations	Improving YoY; stabilized sequentially
Deposit Growth & Funding Mix	Q2 deposits +$14.6M; Q3 deposits +$57.4M, time deposits up; FDIC insured >75%	Q4 deposits +$29.2M; uninsured deposits ~12%; core deposit growth +$8.0M QoQ	Continued growth; favorable insurance/coverage
Liquidity & Borrowings	FHLB advances ~145–155M; liquidity exceeded uninsured deposits by ~$483M in Q3	Borrowings ↓ ~$50.2M QoQ; combined liquidity + borrowing availability exceeded uninsured deposits by ~$557.5M	Strengthened
Credit & Marine Portfolio	Net recoveries in Q2; Q3 net charge-offs $1.24M tied to marine clean-up	Net charge-offs $486K in Q4; marine runoff −$15.8M drove loan decline	Normalizing, focused cleanup
Fee Income Drivers (Mortgage/SBA/SBIC/BOLI)	Q2 gain on loans $492K; Q3 BOLI settlement $671K; SBIC income rose	Q4 gain on loans $861K; SBIC income $475K; no BOLI settlements; sale-leaseback gain $3.874M	Strong transactional fees; one-time property gain
Efficiency & Expenses	Efficiency ~77% in Q2; Q3 improved to 71.34%	Efficiency ~74.58%; salaries/benefits up due to insurance and incentives	Slight deterioration QoQ

Management Commentary

“The team effectively executed on each of our strategic initiatives resulting in a higher net interest margin (NIM), increased deposits, core net loan growth, reduced borrowings, growth in core non-interest income and return on assets (ROA). Additionally, we successfully completed the sale of the Old Town Center building in Winchester, thus unlocking capital for continued expansion.” — Brandon Lorey, President & CEO .
Emphasis on capital strength: Board announced $0.31 dividend; equity increased $10.6M YoY; Bank of Clarke categorized as well-capitalized and exceeded Basel III buffers at YE 2024 .

Q&A Highlights

No Q4 2024 earnings call transcript was found; Q&A highlights and any guidance clarifications are unavailable in public documents for this quarter [ListDocuments returned none for earnings-call-transcript; 2024-12-15 to 2025-02-28].

Estimates Context

S&P Global Wall Street consensus EPS and revenue estimates for EFSI Q4 2024 were unavailable at the time of analysis due to data access limitations; therefore, formal beat/miss comparisons to consensus cannot be provided. Where estimates are needed to adjust outlooks, we recommend re-querying S&P Global once access is restored [GetEstimates error; S&P Global data unavailable].

Key Takeaways for Investors

Core earnings trajectory: underlying adjusted net income ($3.13M) softened modestly QoQ, but YoY growth was solid; investors should separate one-time sale-leaseback gain ($3.9M net-of-tax) from core operational performance .
Funding and liquidity improvements are meaningful: deposits grew; borrowings reduced; uninsured deposits low at ~12%; liquidity + borrowing capacity comfortably cover uninsured balances by ~$557.5M, reducing funding risk and supporting confidence .
NIM stabilization around 3% with higher earning asset yields supports revenue durability despite deposit cost pressure; watch asset yields and deposit pricing (time deposits) to gauge forward margin resilience .
Credit risk normalizing: marine portfolio runoff and targeted charge-offs lowered exposure; ACL coverage of nonaccruals >700% indicates robust reserves against identified issues .
Fee income levers (mortgage/SBA gains, SBIC income) contributed meaningfully; however, BOLI tailwinds were absent in Q4—focus on sustainability of transactional gains into 2025 .
Expenses drifted higher QoQ (insurance, incentives), nudging efficiency ratio up—monitor operating leverage as management targets efficiency improvements post-sale-leaseback .
Dividend maintained at $0.31/share; capital remains sound with “well capitalized” categorization—supports income profile for shareholders while the bank pursues expansion initiatives unlocked by asset optimization .

Disclosures: Company reported certain non-GAAP measures (tax-equivalent NII/NIM, efficiency ratio, adjusted net income excluding one-time gains); referenced calculations and reconciliations are provided in the Q4 press release and 8-K exhibits .

EAGLE FINANCIAL SERVICES INC (EFSI)·Q4 2024 Earnings Summary