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John Marshall Bancorp, Inc. (JMSB) entered into a merger agreement on September 8, 2026, to acquire Eagle Financial Services, Inc. (EFSI), in a deal valued at $253 million.
Each share of Eagle Financial Services common stock will be converted into the right to receive 2 shares of John Marshall common stock.
This represents a value of $46.72 per Eagle Financial Services share, at a 11.50% premium from the stock’s last close.
Eagle Financial Services is the parent company of Bank of Clarke, providing retail and commercial banking, wealth management, mortgage, and SBA lending services across the Shenandoah Valley and Northern Virginia. The company has $1.8 billion in total assets, $1.6 billion in deposits, and $1.5 billion in gross loans.
John Marshall Bancorp is the parent company of John Marshall Bank, providing commercial and retail banking, lending, deposit, treasury, and cash management services to businesses, nonprofits, professionals, and individuals in the Washington, D.C. metropolitan area. The company has $2.4 billion in total assets, $2 billion in loans, and $2 billion in deposits.
The deal will create a company with $4.4 billion in assets, with 23 banking offices, stretching from the Shenandoah Valley through Northern Virginia and adjacent Montgomery County, Maryland, to Washington, D.C.
After the transaction closes, John Marshall expects to raise its quarterly cash dividend to $0.155 per share. This would give EFSI shareholders a quarterly dividend of $0.31 per share.
The combined holding company will be named John Marshall Bancorp, Inc. and headquartered in Reston, Virginia, while its banking subsidiary will remain headquartered in Berryville, Virginia. The company will continue to trade on the Nasdaq Stock Market under the ticker symbol “JMSB.” Both banking organizations will retain their existing brands, with Bank of Clarke continuing to serve its legacy Shenandoah Valley markets.
The combined company’s board will have 12 members, with six directors from John Marshall and six from Eagle Financial Services. Christopher Bergstrom will serve as Executive Chairman, and Cary Nelson will serve as Lead Independent Director.
The combined company will be led by Brandon Lorey, current CEO of Eagle Financial Services, who will become CEO and a director of both the combined company and its banking subsidiary. Kent Carstater, current CFO of John Marshall, will become President of the combined company and Chief Operating Officer of the banking subsidiary. Joseph Zmitrovich, current Chief Banking Officer of Eagle Financial Services, will become Chief Revenue Officer of the combined company and President of the banking subsidiary.
The merger is expected to close early in the first quarter of 2027.
Piper Sandler served as financial advisor, and Troutman Pepper Locke served as legal counsel to Eagle Financial Services. John Marshall was advised by Keefe, Bruyette & Woods, A Stifel Company, as financial advisor, and Skadden, Arps, Slate, Meagher & Flom, as legal counsel.
John Marshall is purchasing Eagle Financial Services at 1.17 times its tangible book value.
To gain an in-depth understanding of this merger and acquisition transaction, visit the Deal Metrics page here:
Deal Metrics for the acquisition of Eagle Financial Services, Inc. (EFSI) by John Marshall Bancorp, Inc. (JMSB)
The Deal Metrics page offers a comprehensive look at each merger or acquisition, including:
Disclaimer: Before buying or selling any securities mentioned in this article, it is advised to conduct your own due diligence. The completeness or accuracy of the content or data provided in this article is not guaranteed.
Editor’s Note: Baranjot Kaur contributed to this article