Eagle Financial Services (EFSI) risk factors, FY2025 10-K

Other

1. 01The Company’s concentration in loans secured by real estate may increase its credit losses, which would negatively affect our financial results
2. 02An inadequate allowance for credit losses would reduce our earnings
3. 03other factors deemed relevant by management

Technology Risks

1. 04The Company’s operations may be adversely affected by cybersecurity risks
2. 05Failure to keep pace with technological change could adversely affect our business
3. 06The Company’s success depends upon its ability to manage interest rate risk
4. 07Inflation can have an adverse impact on our business and on our customersNew
5. 08The Company relies substantially on deposits obtained from customers in its target markets to provide liquidity and support growth
6. 09The Company depends on the Bank for cash flow, and the Bank’s ability to make cash distributions is restricted, which could impact the Company’s ability to satisfy its obligations

Market Risks

1. 10The Company’s success depends upon its ability to compete effectively in the banking industry29% rewritten
2. 11The Company could be adversely affected by economic conditions in its market area
3. 12The soundness of other financial institutions could adversely affect us51% rewritten

Operational Risks

1. 13Our exposure to operational risk may adversely affect our business
2. 14The Company may not be able to successfully manage its growth or implement its growth strategy, which may adversely affect results of operations and financial condition
3. 15Severe weather, natural disasters, acts of war or terrorism, geopolitical instability, public health issues, and other external events could significantly impact the Company's business
4. 16The Company relies heavily on its senior management team and the unexpected loss of key officers could adversely affect operations

Legal, Regulatory and Compliance Risks

1. 17The Company operates in a highly regulated industry, and the laws and regulations that govern the Company’s operations, including changes in them or the Company’s failure to comply with them, and regulatory actions implementing such laws and regulations, may adversely affect the Company28% rewritten
2. 18The Bank is subject to stringent capital and liquidity requirements as a result of the Basel III regulatory capital reforms and the Dodd-Frank Act
3. 19Changes in accounting standards could impact reported earnings and capital
4. 20Evolving expectations from customers, regulators, investors, and other stakeholders with respect to environmental, social and governance ("ESG") practices may impose additional costs on the Company or expose it to new or additional risks80% rewritten
5. 21Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact the Company’s business67% rewritten

Risks Relating to an Investment in Our Common Stock

1. 22There can be no assurances concerning continuing dividend payments
2. 23There is a limited trading market for our common shares, and you may not be able to resell your shares at or above the price you paid for them56% rewritten
3. 24Our stock price can fluctuate widely. On February 10, 2025, the Company completed a public offering increasing its common shares outstanding by 1,796,875 shares, or 50.2%, at a price of $32.00New
4. 25geopolitical conditions such as acts or threats of terrorism, pandemics, or military conflicts
5. 26If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, or change their recommendations regarding our common stock or if our operating results do not meet their expectations, the market price of our common stock and trading volume could decline
6. 27Virginia law and the provisions of the Company’s articles of incorporation and amended and restated bylaws may have an anti-takeover effect, and there are substantial regulatory limitations on changes of control of bank holding companies