Eagle Financial Services : Q3 2021 Earnings Deck

Earnings Deck

SEPTEMBER 30, 2021

Forward Looking Statements:

The Company makes forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include statements regarding profitability, liquidity, adequacy of capital, the allowance for loan losses, interest rate sensitivity, market risk, growth strategy, and financial and other goals. The words, "believes," "expects," "may," "will," "should," "projects," "contemplates," "anticipates," "forecasts," "intends," or other similar words or terms are intended to identify forward-looking statements. These forward- looking statements are subject to significant uncertainties.

Because of these uncertainties, actual future results may be materially different from the results indicated by these forward-looking statements. In addition, past results of operations do not necessarily indicate future results. The following presentation should be read in conjunction with the consolidated financial statements and related notes and risk factors included in the Company's Form 10-K for the year ended December 31, 2020, and other reports filed with the Securities and Exchange Commission.

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Executive Team:

		Mr. Lorey has been the President and Chief Executive Officer of both the Company and its subsidiary bank, Bank of Clarke County, since July 2019. Prior to
Brandon Lorey	joining the Company in 2019, he had since 2015 served as Executive Vice President, Head of Consumer Banking of United Bank, a $7.3 billion asset bank
President, Chief	headquartered in Connecticut. Previously, he had served as Executive Vice President, Consumer Lending from April 2014 to June 2015, and as Senior Vice
President, Head of Consumer Lending from February 2013 to April 2014. Prior to joining United Bank and its predecessors, he served as Chief Credit and
Executive Officer and
Lending Officer for H&R Block Bank in Kansas City, Senior Vice President at Sovereign Bank in Pennsylvania, and held various roles at Chevy Chase Bank, a
Director
Federal Savings Bank in Maryland, including Vice President of risk, finance, operations and direct sales.
Kathleen Chappell	Ms. Chappell has served as Executive Vice President and Chief Financial Officer of the Company and the Bank since 2019. Previously, she served as
Executive Vice	Senior Vice President and Chief Financial Officer of the Company and the Bank from 2009 to 2019. From 2005 to 2008 she served as Senior Vice
President and Chief	President and Chief Financial Officer of Middleburg Financial Corporation. Prior to she employment with Middleburg Financial Corporation, she had
Financial Officer	been employed by Yount, Hyde and Barbour, P.C., a regional accounting firm in Winchester, VA.
Joe Zmitrovich	Mr. Zmitrovich has served as Executive Vice President and Chief Banking Officer of the Bank since 2019. Previously, he served as Senior Vice
Executive Vice President	President and Chief Lending Officer of the Bank from 2016 to 2019. From 2015 to July 2016, he served as Market President of the Southern
and Chief Banking	Pennsylvania region for BB&T. From 2008 to 2015 he served as Senior Vice President and Commercial Executive for Susquehanna Bank.
Officer

Kaley Crosen

Executive Vice President

and Chief Human

Resource Officer

Ms. Crosen has served as Secretary of the Company and as Executive Vice President and Chief Human Resources Officer of the Bank since 2019. Previously, she served as Senior Vice President and Human Resources Director from 2008 to 2019. Ms. Crosen served as Vice President of Human Resources from 1999 to 2008.

Debra Purrington	Ms. Purrington has served as Executive Vice President and Chief Fiduciary Officer since joining the Bank of Clarke County in 2021. Previously, she was
Executive Vice President	SVP Director of Trust Services at The Fauquier Bank. Before moving to Virginia in 2019, Debra practiced fiduciary law in Massachusetts for many years
and Chief Fiduciary	in addition to serving as Market Trust Director for the Northeast Region of U.S. Trust Bank of America from 2005 through 2014.
Officer
Todd Braithwaite	Mr. Braithwaite has been Executive Vice President and Chief Technology Officer since 2019. Prior to that time, he served as Vice President / Director
Executive Vice	of IT. From 2000 to 2014 he served as Vice President of IT for Middleburg Bank. Mr. Braithwaite joined the bank in 2015.
President and Chief
Technology Officer

Aaron Poffinberger

Executive Vice

President and Chief

Risk Officer

Mr. Poffinberger has been Executive Vice President, Chief Risk Officer since 2019. Before that time, he served as Vice President / Internal Audit. From 2004 to 2015 he served as Audit manager for Yount, Hyde and Barbour. Mr. Poffinberger joined the bank in 2015.

James George. II

Executive Vice

President and Chief

Credit Officer

Mr. George has served as Executive Vice President, Chief Credit Officer since 2019. Prior to that time, Mr. George served as Senior Credit Officer. Prior to joining the Bank in 2014, he was the Senior Credit Officer of the Blue Ridge region of BB&T.

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Company Overview

Bank of

Clarke

County

EFSI History and Key Stats

 EFSI was incorporated in 1991

 Bank of Clarke County was established in 1881 and has

operated successfully for over 140 years

 Headquartered in Berryville, VA

 Operated solely in Clarke County until 1992 when

Commercial

Banking

• Seasoned lenders with market and various industry experience
• Gov Con lending
• 12 branches and 2 LPOs
• Business online banking
• Mobile for business
• Cash/Treasury management

Retail Banking

• 12 branches
• Call center
• Online and mobile banking
• Online deposit account opening
• Online mortgage application

Wealth

Management

• Traditional trust and administrative services to local clients
• Three investment advisors serving Eastern and Western markets of the Bank
• New office opening in Warrenton, VA

expanded West into Winchester City, VA and Frederick

County markets

 In 2010, began expansion into the Northern VA markets

 In 2021, opened an LPO in Frederick, MD and a Trust

office in Warrenton, VA

 High level of Insider ownership ~ 22%

 Consistent dividend yield ~ 3%

 Common shares outstanding 3,449,204

 Consistent high level of core deposits resulting in low

COF ~17bps

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Company Overview

Geographic Presence1

EFSI Financial Snapshot

Financial Snapshot as of and for the Nine Months Ended September 30, 2021

2021 Q3

YTD

Profitability

Regulatory

Capital

Asset

Quality

EFSI

NIM	3.58%
ROAA	0.98%
ROAE	10.94%
Efficiency Ratio	68.65%
TCE / TA	8.76%
Tier 1 Leverage	8.78%
Tier 1 Capital Ratio	11.30%
Total Capital Ratio	12.18%
MRQ NCOs / Average Loans	0.01%
NPAs / Assets	0.30%
Loan Loss Reserves / Gross Loans	0.91%
Market Price	$34.20
Tangible Book Value	$32.21
Average Monthly Volume	12,900
Fully Diluted EPS	$2.54

$1.3B $915M $1.1B $354M

TOTAL		TOTAL NET		TOTAL		AUM
ASSETS		LOANS		DEPOSITS

1) Opened the LPO in Frederick, MD August 2021

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