Eagle Financial Services, Inc. announced the completion of a private placement offering of 4.50% Fixed-to-Floating Rate Subordinated Notes due 2032 (the Notes), in the aggregate principal amount of $30.0 million, to certain qualified institutional buyers and accredited institutional investors. The Company intends to use the net issuance proceeds for general corporate purposes, including a capital contribution to the Bank to support its continued organic growth. The Notes are intended to qualify as Tier 2 capital for the Company for regulatory capital purposes.

The Notes mature on April 1, 2032, unless redeemed earlier. The Notes initially bear interest, payable semi-annually in arrears, at a fixed rate of 4.50% per annum until April 1, 2027. Beginning April 1, 2027, and until maturity or redemption, the interest rate applicable to the outstanding principal amount of the Notes due will reset quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate (SOFR) plus 235 basis points, payable quarterly in arrears.

The Company has the option to redeem the Notes, at par and in whole or in part, on any scheduled interest payment date beginning on April 1, 2027. Luse Gorman, PC served as legal counsel to the Company.  Piper Sandler & Co. served as placement agent. Kilpatrick Townsend & Stockton LLP served as legal counsel to Piper Sandler & Co.