Eagle Financial Services Inc

John Marshall Bancorp has agreed to an all-stock merger with Eagle Financial Services, the parent of Bank of Clarke, in a deal valued at approximately $253 million. Based on John Marshall's closing share price of $23.36 on September 4, 2026, the transaction implies a value of $46.72 for each Eagle Financial Services common share. Upon completion, the combined company will have $4.4 billion in assets and 23 banking offices, with a network extending from the Shenandoah Valley across Northern Virginia into Montgomery County, Maryland. The parent company will retain the name John Marshall Bancorp and be based in Reston, Virginia, while its banking unit will be headquartered in Berryville, Virginia, and shares will continue trading on Nasdaq under the symbol JMSB. The boards of both companies will each have six directors on the combined board, and the deal is expected to close in early Q1 2027, subject to regulatory and shareholder approvals.

Eagle Financial Services reported second-quarter net income of $5 million, or $0.92 per diluted share, including a one-time gain from the sale of its ownership interest in Bering Insurance Group. Excluding that gain, adjusted net income was $2.2 million, or $0.41 per diluted share. Net interest income rose 6.7% from the first quarter to $16.9 million, while net interest margin expanded 23 basis points sequentially to 3.86%. Provision expense totaled $3.2 million, reflecting higher specific reserves and loan growth, and nonperforming assets rose to $16.5 million, or 0.89% of total assets, largely due to one commercial real estate relationship placed on nonaccrual status. CEO Brandon Lorey said the company remains open to strategic opportunities including potential partnerships and acquisitions.