Eagle Bancorp Montana, Inc.

Previous wording

This discussion and analysis provides information that management believes is necessary to understand Eagle's financial condition, changes in financial condition, results of operations, and cash flows for the three and six months ended June 30, 2025, as compared to 2024. The following should be read in conjunction with the Company's Consolidated Financial Statements, and accompanying Notes thereto, for the year ended December 31, 2024, included in Eagle's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (SEC) on March 14, 2025, and in conjunction with the Condensed Consolidated Financial Statements, and accompanying Notes thereto, included in Part I - Item 1. Financial Statements of this report. The results of operations for the three and six months ended June 30, 2025, are not necessarily indicative of the future results that may be attained for the entire year or other interim periods.

Current wording

This discussion and analysis provides information that management believes is necessary to understand Eagle's financial condition, changes in financial condition, results of operations, and cash flows for thethree and nine months ended September 30, 2025, as compared to the same period of 2024. The following should be read in conjunction with the Company's Consolidated Financial Statements, and accompanying Notes thereto, for the year ended December 31, 2024, included in Eagle's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on March 14, 2025, and in conjunction with the Condensed Consolidated Financial Statements, and accompanying Notes thereto, included in Part I - Item 1. Financial Statements of this report. The results of operations for thethree and nine months ended September 30, 2025, are not necessarily indicative of the future results that may be attained for the entire year or other interim periods.

Previous wording

The level and movement of interest rates impacts the Bank’s earningsas well. The Federal Open Market Committee decreased the federal funds target rate to 4.50% during the year ended December 31, 2024. The rate remained at 4.50% during the six months ended June 30, 2025.

Current wording

The level and movement of interest rates impacts the Bank’s earningsas well. The Federal Open Market Committee decreased the federal funds target rate to 4.50% during the year ended December 31, 2024. The rate was decreased to 4.25% during the nine months ended September 30, 2025.

Previous wording

Total assets were $2.14 billion at June 30, 2025, an increase of $34.54 million, or 1.6% from $2.10 billion at December 31, 2024. Loans receivable, net increased by $48.13 million or 3.2% from December 31, 2024. However, securities available-for-sale decreased $7.57 million, or 2.6% from December 31, 2024. Total liabilities were $1.96 billion at June 30, 2025, an increase of $28.67 million, or 1.5% from $1.93 billion at December 31, 2024. The increase was largely due to an increase in total deposits, offset by a decrease in FHLB advances. Total deposits increased $56.70 million from December 31, 2024 and total borrowings decreased $21.45 million from December 31, 2024. Total shareholders’ equity increased $5.87 million, or 3.4% from December 31, 2024.

Current wording

Total assets were $2.12 billion at September 30, 2025, an increase of $16.72 million, or 0.8% from $2.10 billion at December 31, 2024. Loans receivable, net increased by $36.23 million, or 2.4% from December 31, 2024. However, securities available-for-sale decreased $12.67 million, or 4.3% from December 31, 2024. Total liabilities were $1.93 billion at September 30, 2025, an increase of $4.99 million, or 0.3% from $1.93 billion at December 31, 2024. The increase was largely due to an increase in total deposits, offset by a decrease in FHLB advances. Total deposits increased $70.95 million from December 31, 2024 and total borrowings decreased $61.65 million from December 31, 2024. Total shareholders’ equity increased $11.72 million, or 6.7% from December 31, 2024.

Previous wording

Securities available-for-sale were $285.02 million at June 30, 2025, a decrease of $7.57 million, or 2.6% from $292.59 million at December 31, 2024. The decrease was primarily due to maturity, principal payments and call activity of $13.34 million offset by a security purchase of $3.02 million and an increase in fair value of $3.12 million.

Current wording

Securities available-for-sale were $279.92 million at September 30, 2025, a decrease of $12.67 million, or 4.3%from $292.59 million at December 31, 2024. The decrease was primarily due to maturity, principal payments and call activity of $22.36 million offset by a security purchase of $3.02 million and an increase in fair value of $7.31 million.

Previous wording

Loans receivable, netincreased $48.13 million, or 3.2%, to $1.55 billion at June 30, 2025 from $1.50 billion at December 31, 2024. The increase was largely driven by an increase in total commercial loans of $29.10 million, an increase in commercial real estate loans of $21.67 million and an increase of $5.24 million in home equity loans. The increases were slightly offset by a decrease of $5.13 million in total residential loans and a decrease of $1.85 million in consumer loans.

Current wording

Loans receivable, netincreased $36.23 million, or 2.4%, to $1.54 billion at September 30, 2025 from $1.50 billion at December 31, 2024. The increase was largely driven by an increase in commercial real estate loans of $26.36 million, an increase in total commercial loans of $19.50 million and an increase of $9.11 million in home equity loans. The increases were slightly offset by a decrease of $14.88 million in total residential loans and a decrease of $2.95 million in consumer loans.

Previous wording

Total loan originations were $280.72 million for thesix months ended June 30, 2025. Total residential 1-4 family originations were $121.76 million, which includes $98.55 million of loans held-for-sale originations. Total commercial originations were $76.48 million. Total commercial real estate originations were $60.97 million. Home equity loan originations totaled $14.68 million. Consumer loan originations totaled $6.83 million. Loans held-for-sale increased by $280,000 to$13.65 million at June 30, 2025 from$13.37 million at December 31, 2024.

Current wording

Total loan originations were $433.43 million for thenine months ended September 30, 2025. Total residential 1-4 family originations were $203.48 million, which includes $163.16 million of loans held-for-sale originations. Total commercial originations were $99.35 million. Total commercial real estate originations were $96.99 million. Home equity loan originations totaled $23.56 million. Consumer loan originations totaled $10.05 million. Loans held-for-sale decreased by $3.01 million to$10.36 million at September 30, 2025 from$13.37 million at December 31, 2024.

Previous wording

Nonaccrual loans as of June 30, 2025 and December 31, 2024 include $617,000 and $591,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.

Current wording

Nonaccrual loans as of September 30, 2025 and December 31, 2024 include $470,000 and $591,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.

Previous wording

Commercial real estate loans made up $675.29 million or 43.0% of the Bank's total loan portfolio at June 30, 2025, compared to $645.96 million or 42.5% at December 31, 2024. The Bank's commercial real estate loans are primarily permanent loans secured by improved property such as office buildings, retail stores, commercial warehouses, and apartment buildings. The terms and conditions of each loan are tailored to the needs of the borrower and based on the financial strength of the project and any guarantors. Generally, commercial real estate loans originated by the Bank will not exceed 80.0% of the appraised value or the selling price of the property, whichever is less. The Bank's commercial real estate portfolio's average loan-to-value ratio range was 32% to 48% as of June 30, 2025.

Current wording

Commercial real estate loans made up $670.40 million or 43.0% of the Bank's total loan portfolio at September 30, 2025, compared to $645.96 million or 42.5% at December 31, 2024. The Bank's commercial real estate loans are primarily permanent loans secured by improved property such as office buildings, retail stores, commercial warehouses, and apartment buildings. The terms and conditions of each loan are tailored to the needs of the borrower and based on the financial strength of the project and any guarantors. Generally, commercial real estate loans originated by the Bank will not exceed 80.0% of the appraised value or the selling price of the property, whichever is less. The Bank's commercial real estate portfolio's average loan-to-value ratio range was 32% to 48% as of September 30, 2025.

Previous wording

Deposits increased by $56.70 million, or 3.4%, from December 31, 2024 to June 30, 2025. Money market deposits increased $83.59 million. This increase was partially offset by decreases in interest-bearing checking of $16.46 million, savings of $4.98 million, certificates of deposit of $3.58 million and noninterest checking of $1.89 million.

Current wording

Deposits increased by $70.95 million, or 4.2%, from December 31, 2024 to September 30, 2025. Money market deposits increased by $83.70 million and noninterest checking increased by $9.85 million. These increases were partially offset by decreases in certificates of deposits of $10.05 million, interest-bearing checking of $6.35 million and savings of $6.20 million.

Previous wording

The estimated amount of uninsured deposits was approximately $329.0 million or 19% of total deposits at June 30, 2025 compared to approximately $323.0 million or 19% of total deposits at December 31, 2024.

Current wording

The estimated amount of uninsured deposits was approximately $339.7 million or 19% of total deposits at September 30, 2025 compared to approximately $323.0 million or 19% of total deposits at December 31, 2024.

Previous wording

Total borrowings decreased by $21.45 million, or 10.7%, to $178.63 million at June 30, 2025 from $200.08 million at December 31, 2024, due to a decrease in FHLB advances and other borrowings.

Current wording

Total borrowings decreased by $61.65 million, or 30.8%, to $138.43 million at September 30, 2025 from $200.08 million at December 31, 2024, due to a decrease in FHLB advances and other borrowings.

Previous wording

Total shareholders’ equity increased by $5.87 million, or 3.4%, to $180.64 million at June 30, 2025 from $174.77 million at December 31, 2024. The increase was primarily attributed to net income of $6.48 million and a decrease in unrealized losses of securities available for sale of $2.29 million. These increases were partially offset by dividends paid of $2.27 million and treasury stock repurchases of $1.16 million.

Current wording

Total shareholders’ equity increased by $11.72 million, or 6.7%, to $186.49 million at September 30, 2025 from $174.77 million at December 31, 2024. The increase was primarily attributed to net income of $10.11 million and a decrease in unrealized losses of securities available for sale of $5.38 million. These increases were partially offset by dividends paid of $3.42 million and treasury stock repurchases of $1.16 million.

Previous wording

Net Interest Margin (NIM). Net interest margin for the three months ended June 30, 2025 was 3.91%, an increase of 50 basis points compared to June 30, 2024. For the six months ended June 30, 2025, net interest margin was 3.82%, an increase of 45 basis points compared to the six months ended June 30, 2024. The change in NIM reflects the increase in yields on interest-earning assets and the decrease in yield on interest-bearing liabilities.

Current wording

Net Interest Margin (NIM). Net interest margin for the three months ended September 30, 2025 was 3.94%, an increase of 60 basis points compared to September 30, 2024. For the nine months ended September 30, 2025, net interest margin was 3.86%, an increase of 50 basis points compared to the nine months ended September 30, 2024. The change in NIM reflects the increase in yields on interest-earning assets and the decrease in the average rate on interest-bearing liabilities.

Previous wording

*Net Income.*Eagle’s net income for the six months ended June 30, 2025 was $6.48 million compared to $3.64 million for the six months ended June 30, 2024. The increase of $2.84 million was largely driven by an increase in net interest income after provision for credit losses of $3.40 million. For the current period, basic and diluted earnings per common share were both $0.83. Basic and diluted earnings per common share were both $0.46 for the six months ended June 30, 2024.

Current wording

*Net Income.*Eagle’s net income for the three months ended September 30, 2025 was $3.63 million compared to $2.71 million for the three months ended September 30, 2024. The increase of $921,000 was due to an increase in net interest income after provision for credit losses of $3.10 million, partially offset by an increase in noninterest expense of $1.12 million and an increase in provision for income taxes of $797,000. For the current period, basic earnings per common share was $0.47 and diluted earnings per common share was $0.46. Basic earning per common share was $0.35 and diluted earnings per common share was $0.34 for the three months ended September 30, 2024.

Previous wording

*Net Interest Income.*Net interest income increased to $18.15 million for the three months ended June 30, 2025, from $15.63 million for the three months ended June 30, 2024. The increase of $2.51 million, or 16.1% was the result of an increase in interest and dividend income of $1.33 million and a decrease in interest expense of $1.19 million.

Current wording

*Net Interest Income.*Net interest income increased to $18.69 million for the three months ended September 30, 2025, from $15.80 million for the three months ended September 30, 2024. The increase of $2.89 million, or 18.3% was primarily the result of an increase in interest and dividend income of $1.07 million and a decrease in interest expense of $1.81 million.

Previous wording

*Interest and Dividend Income.*Interest and dividend income was $27.15 million for the three months ended June 30, 2025, compared to $25.82 million for the three months ended June 30, 2024. The increase of $1.33 million, or 5.1% was driven by interest and fees on loans, which increased to $24.44 million for the three months ended June 30, 2025, from $22.78 million for the three months ended June 30, 2024. The increase in interest and fees on loans was due to an increase in the average yield on loans, as well as an increase in the average balance of loans. The average interest rate earned on loans receivable increased by 27 basis points, from 6.04% for the three months ended June 30, 2024, to 6.31% for the current period. Interest accretion on purchased loans was $607,000 for the three months ended June 30, 2025, which resulted in a 13 basis point increase in net interest margin compared to $304,000 for the three months ended June 30, 2024, which resulted in a seven basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, for the three months ended June 30, 2025 were $1.55 billion compared to $1.51 billion for the three months ended June 30, 2024. This represents an increase of $41.45 million, or 2.7% and was due to organic growth. Interest on investment securities available-for-sale decreased by $234,000 period over period due to a decrease in average balances for investments from $306.21 million for the three months ended June 30, 2024 to $287.71 million for the three months ended June 30, 2025. In addition, average interest rates earned on investments decreased from 3.45% for the three months ended June 30, 2024 to 3.34% for the three months ended June 30, 2025.

Current wording

*Interest and Dividend Income.*Interest and dividend income was $27.83 million for the three months ended September 30, 2025, compared to $26.76 million for the three months ended September 30, 2024. The increase of $1.07 million, or 4.0% was driven by interest and fees on loans, which increased to $25.21 million for the three months ended September 30, 2025, from $23.80 million for the three months ended September 30, 2024. The increase in interest and fees on loans was due to an increase in the average yield on loans, as well as an increase in the average balance of loans. The average interest rate earned on loans receivable increased by 22 basis points, from 6.10% for the three months ended September 30, 2024, to 6.32% for the current period. Interest accretion on purchased loans was $234,000 for the three months ended September 30, 2025, which resulted in a five basis point increase in net interest margin compared to $167,000 for the three months ended September 30, 2024, which resulted in a three basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, for the three months ended September 30, 2025 were $1.58 billion compared to $1.55 billion for the three months ended September 30, 2024. This represents an increase of $34.26 million, or 2.2% and was due to organic growth. Interest on investment securities available-for-sale decreased by $276,000 period over period due to a decrease in average balances for investments from $305.73 million for the three months ended September 30, 2024 to $280.68 million for the three months ended September 30, 2025. In addition, average interest rates earned on investments decreased from 3.37% for the three months ended September 30, 2024 to 3.28% for the three months ended September 30, 2025.

Previous wording

*Interest Expense.*Total interest expense was $9.01 million for the three months ended June 30, 2025, compared to $10.19 million for the three months ended June 30, 2024. The decrease of $1.19 million was due to a net decrease of $1.18 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance of FHLB advances and other borrowings decreasing from $192.35 million for the three months ended June 30, 2024, to $125.77 million for the three months ended June 30, 2025. The average rate paid on FHLB advances and other borrowings also decreased from 5.47% for the three months ended June 30, 2024, to 4.65% for the three months ended June 30, 2025. The overall average rate on total deposits was also down from 1.70% for the three months ended June 30, 2024, compared to 1.62% for the three months ended June 30, 2025. The average balance for total deposits was $1.71 billion for the three months ended June 30, 2025, compared to $1.63 billion for the three months ended June 30, 2024.

Current wording

*Interest Expense.*Total interest expense was $9.15 million for the three months ended September 30, 2025, compared to $10.96 million for the three months ended September 30, 2024. The decrease of $1.81 million, or 16.5% was due to a net decrease of $1.80 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance of FHLB advances and other borrowings decreasing from $228.47 million for the three months ended September 30, 2024, to $99.27 million for the three months ended September 30, 2025. The average rate paid on FHLB advances and other borrowings also decreased from 5.36% for the three months ended September 30, 2024, to 4.57% for the three months ended September 30, 2025. The overall average rate on total deposits was also down from 1.76% for the three months ended September 30, 2024, compared to 1.63% for the three months ended September 30, 2025. However, the average balance for total deposits was $1.62 billion for the three months ended September 30, 2024, compared to $1.75 billion for the three months ended September 30, 2025.

Previous wording

*Provision for Credit Losses.*Provision for credit losses was $1.04 million for the three months ended June 30, 2025, compared to $412,000 for the three months ended June 30, 2024. The provision for credit losses for the three months ended June 30, 2025, included an increase in the provision for credit losses on loans to $1.06 million, offset slightly by a recapture of the provision for unfunded commitments of $20,000.

Current wording

*Provision for Credit Losses.*Provision for credit losses was $62,000 for the three months ended September 30, 2025, compared to $277,000 for the three months ended September 30, 2024. The provision for credit losses for the three months ended September 30, 2025, included a decrease in the provision for credit losses on loans to $82,000, offset slightly by a recapture of the provision for unfunded commitments of $20,000.

Previous wording

*Noninterest Income.*Total noninterest income was $4.81 million for the three months ended June 30, 2025, compared to $4.27 million for the three months ended June 30, 2024. The increase of $538,000, or 12.6% was primarily due to an increase in mortgage banking, net, of $509,000. Mortgage banking, net, includes net gain on sale of mortgage loans which increased to $2.08 million for the three months ended June 30, 2025, compared to $1.60 million for the three months ended June 30, 2024. During the three months ended June 30, 2025, $54.60 million residential mortgage loans were sold compared to $53.23 million in the three months ended June 30, 2024. Gross margin levels increased from 3.01% for the three months ended June 30, 2024, to 3.81% for the three months ended June 30, 2025.

Current wording

*Noninterest Income.*Total noninterest income was $4.72 million for the three months ended September 30, 2025, compared to $4.98 million for the three months ended September 30, 2024. The decrease of $266,000, or 5.3% was primarily due to a decrease in appreciation in cash surrender value of life insurance of $654,000 due to a death benefit for bank owned life insurance in 2024. The decrease was partially offset by an increase in mortgage banking, net, of $324,000. Mortgage banking, net, includes net gain on sale of mortgage loans which increased to $2.23 million for the three months ended September 30, 2025, compared to $1.69 million for the three months ended September 30, 2024. During the three months ended September 30, 2025, $68.26 million residential mortgage loans were sold compared to $51.02 million in the three months ended September 30, 2024. However, gross margin levels decreased slightly from 3.31% for the three months ended September 30, 2024, to 3.27% for the three months ended September 30, 2025.

Previous wording

*Noninterest Expense.*Noninterest expense was $17.93 million for the three months ended June 30, 2025, compared to $17.31 million for the three months ended June 30, 2024, an increase of $619,000 or 3.6%.

Current wording

*Noninterest Expense.*Noninterest expense was $18.39 million for the three months ended September 30, 2025, compared to $17.27 million for the three months ended September 30, 2024, an increase of $1.12 million, or 6.5%. The driver of the increase was salaries and employee benefits which increased $1.30 million.

Previous wording

*Provision for Income Taxes.*Provision for income taxes was $751,000 for the three months ended June 30, 2025, compared to $444,000 for the three months ended June 30, 2024. The effective tax rate was 18.8% for the current period compared to 20.3% for the three months ended June 30, 2024.

Current wording

*Provision for Income Taxes.*Provision for income taxes was $1.33 million for the three months ended September 30, 2025, compared to $529,000 for the three months ended September 30, 2024. The effective tax rate was 26.8% for the current period compared to 16.3% for the three months ended September 30, 2024. The effective tax rate has started to rise as the Company’s pretax earnings have increased at a faster pace than tax-exempt income.

Previous wording

The following compares the results of operations for the six months ended June 30, 2025 and 2024.

Current wording

The following compares the results of operations for the nine months ended September 30, 2025 and 2024.

Previous wording

*Net Income.*Eagle’s net income for the three months ended June 30, 2025 was $3.24 million compared to $1.74 million for the three months ended June 30, 2024. The increase of $1.50 million was largely driven by an increase in net interest income after provision for credit losses of $1.89 million. For the current period, basic earnings per common share was $0.42 and diluted earnings per common share was $0.41. Basic and diluted earnings per common share were both $0.22 for the three months ended June 30, 2024.

Current wording

*Net Income.*Eagle’s net income for the nine months ended September 30, 2025 was $10.11 million compared to $6.35 million for the nine months ended September 30, 2024. The increase of $3.76 million was due to an increase in net interest income after provision for credit losses of $6.50 million, partially offset by an increase in noninterest expense of $1.71 million and an increase in provision for income taxes of $1.37 million. For the current period, basic earnings per common share was $1.30 and diluted earnings per common share was $1.29. Basic and diluted earnings per common share were both $0.81 for the nine months ended September 30, 2024.

Previous wording

*Net Interest Income.*Net interest income increased to $35.05 million for the six months ended June 30, 2025, from $30.85 million for the six months ended June 30, 2024. The increase of $4.20 million, or 13.6% was the result of an increase in interest and dividend income of $2.46 million and a decrease in interest expense of $1.75 million.

Current wording

*Net Interest Income.*Net interest income increased to $53.74 million for the nine months ended September 30, 2025, from $46.65 million for the nine months ended September 30, 2024. The increase of $7.09 million, or 15.2% was primarily the result of an increase in interest and dividend income of $3.53 million and a decrease in interest expense of $3.56 million.

Previous wording

*Interest and Dividend Income.*Interest and dividend income was $53.22 million for the six months ended June 30, 2025, compared to $50.76 million for the six months ended June 30, 2024. The increase of $2.46 million, or 4.8% was driven by interest and fees on loans, which increased to $47.76 million for the six months ended June 30, 2025, from $44.72 million for the six months ended June 30, 2024. The increase in interest and fees on loans was due to an increase in the average yield on loans, as well as an increase in the average balance of loans. The average interest rate earned on loans receivable increased by 30 basis points, from 5.95% for the six months ended June 30, 2024, to 6.25% for the current period. Interest accretion on purchased loans was $779,000 for the six months ended June 30, 2025, which resulted in an eight basis point increase in net interest margin compared to $423,000 for the six months ended June 30, 2024, which resulted in a five basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, for the six months ended June 30, 2025 were $1.54 billion compared to $1.51 billion for the six months ended June 30, 2024. This represents an increase of $34.47 million, or 2.3% and was due to organic growth. Interest on investment securities available-for-sale decreased by $507,000 period over period, due to the decrease in average balances for investments from $310.17 million for the six months ended June 30, 2024 to $290.49 million for the six months ended June 30, 2025. In addition, average interest rates earned on investments decreased from 3.46% for the six months ended June 30, 2024, to 3.37% for the six months ended June 30, 2025.

Current wording

*Interest and Dividend Income.*Interest and dividend income was $81.05 million for the nine months ended September 30, 2025, compared to $77.52 million for the nine months ended September 30, 2024. The increase of $3.53 million, or 4.6% was driven by interest and fees on loans, which increased to $72.98 million for the nine months ended September 30, 2025, from $68.53 million for the nine months ended September 30, 2024. The increase in interest and fees on loans was due to an increase in the average yield on loans, as well as an increase in the average balance of loans. The average interest rate earned on loans receivable increased by 27 basis points, from 6.01% for the nine months ended September 30, 2024, to 6.28% for the current period. Interest accretion on purchased loans was $1.01 million for the nine months ended September 30, 2025, which resulted in an seven basis point increase in net interest margin compared to $590,000 for the nine months ended September 30, 2024, which resulted in a four basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, for the nine months ended September 30, 2025 were $1.55 billion compared to $1.52 billion for the nine months ended September 30, 2024. This represents an increase of $34.60 million, or 2.3% and was due to organic growth. Interest on investment securities available-for-sale decreased by $783,000 period over period, due to the decrease in average balances for investments from $308.69 million for the nine months ended September 30, 2024 to $287.18 million for the nine months ended September 30, 2025. In addition, average interest rates earned on investments decreased from 3.43% for the nine months ended September 30, 2024, to 3.34% for the nine months ended September 30, 2025.

Previous wording

*Interest Expense.*Total interest expense was $18.17 million for the six months ended June 30, 2025, compared to $19.92 million for the six months ended June 30, 2024. The decrease of $1.75 million, or 8.8% was primarily due to a net decrease of $2.05 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance of FHLB advances and other borrowings decreasing from $186.77 million for the six months ended June 30, 2024, to $132.30 million for the six months ended June 30, 2025. The average rate paid on FHLB advances and other borrowings also decreased from 5.50% for the six months ended June 30, 2024, to 4.70% for the six months ended June 30, 2025. The overall average rate on total deposits was down from 1.66% for the six months ended June 30, 2024, compared to 1.64% for the six months ended June 30, 2025. However, the average balance for total deposits was $1.69 billion for the six months ended June 30, 2025, compared to $1.63 billion for the six months ended June 30, 2024.

Current wording

*Interest Expense.*Total interest expense was $27.32 million for the nine months ended September 30, 2025, compared to $30.88 million for the nine months ended September 30, 2024. The decrease of $3.56 million, or 11.5% was primarily due to a net decrease of $3.87 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance of FHLB advances and other borrowings decreasing from $200.67 million for the nine months ended September 30, 2024, to $121.15 million for the nine months ended September 30, 2025. The average rate paid on FHLB advances and other borrowings also decreased from 5.45% for the nine months ended September 30, 2024, to 4.67% for the nine months ended September 30, 2025. The overall average rate on total deposits was down from 1.69% for the nine months ended September 30, 2024, compared to 1.64% for the nine months ended September 30, 2025. However, the average balance for total deposits was $1.62 billion for the nine months ended September 30, 2024, compared to $1.71 billion for the nine months ended September 30, 2025.

Previous wording

*Provision for Credit Losses.*Provision for credit losses was $1.08 million for the six months ended June 30, 2025, compared to $277,000 for the six months ended June 30, 2024. The increase in the provision was driven by loan growth. The provision for credit losses for the six months ended June 30, 2025, included an increase in the provision for credit losses on loans to $930,000 and an increase in the provision for unfunded commitments to $150,000.

Current wording

Provision *for Credit Losses.*Provision for credit losses was $1.14 million for the nine months ended September 30, 2025, compared to $554,000 for the nine months ended September 30, 2024. The increase in the provision was largely driven by loan growth. The provision for credit losses for the nine months ended September 30, 2025, included an increase in the provision for credit losses on loans to $1.01 million and an increase in the provision for unfunded commitments to $130,000.

Previous wording

*Noninterest Income.*Total noninterest income was $8.82 million for the six months ended June 30, 2025, compared to $8.22 million for the six months ended June 30, 2024. The increase of $602,000, or 7.3% was primarily due to an increase in mortgage banking, net, of $457,000 and an increase in appreciation in cash surrender value of life insurance of $135,000 due to bank owned life insurance policies purchased in 2024. Mortgage banking, net, includes net gain on sale of mortgage loans which increased to $3.43 million for the six months ended June 30, 2025, compared to $3.01 million for the six months ended June 30, 2024. During the six months ended June 30, 2025, $97.40 million residential mortgage loans were sold compared to $96.79 million in the six months ended June 30, 2024. Gross margin levels increased from 3.11% for the six months ended June 30, 2024, to 3.52% for the six months ended June 30, 2025.

Current wording

*Noninterest Income.*Total noninterest income was $13.54 million for the nine months ended September 30, 2025, compared to $13.20 million for the nine months ended September 30, 2024. The increase of $336,000, or 2.5% was primarily due to an increase in mortgage banking, net, of $781,000, partially offset by a decrease in appreciation in cash surrender value of life insurance of $519,000 due to a death benefit for bank owned life insurance in 2024. Mortgage banking, net, includes net gain on sale of mortgage loans which increased to $5.66 million for the nine months ended September 30, 2025, compared to $4.70 million for the nine months ended September 30, 2024. During the nine months ended September 30, 2025, $165.65 million residential mortgage loans were sold compared to $147.81 million in the nine months ended September 30, 2024. Gross margin levels increased from 3.18% for the nine months ended September 30, 2024, to 3.42% for the nine months ended September 30, 2025.

Previous wording

*Noninterest Expense.*Noninterest expense was $34.93 million for the six months ended June 30, 2025, compared to $34.34 million for the six months ended June 30, 2024, an increase of $592,000 or 1.7%. Software subscriptions increased $334,000 due to implementing a new loan origination system. Occupancy and equipment expense increased $329,000 due to maintenance expense and costs related to opening a new branch. Salaries and employee benefits increased modestly by $318,000. However, contract changes led to lower data processing expense which decreased $272,000 and partially offset the increases.

Current wording

*Noninterest Expense.*Noninterest expense was $53.32 million for the nine months ended September 30, 2025, compared to $51.61 million for the nine months ended September 30, 2024, an increase of $1.71 million, or 3.3%. Salaries and employee benefits increased by $1.62 million. Software subscriptions also increased by $503,000 due to new system implementations. However, contract changes led to lower data processing expense which decreased $533,000.

Previous wording

*Provision for Income Taxes.*Provision for income taxes was $1.38 million for the six months ended June 30, 2025, compared to $814,000 for the six months ended June 30, 2024. The effective tax rate was 17.6% for the current period and 18.3% for the six months ended June 30, 2024. The effective tax rate has been impacted by an increase in the proportion of tax-exempt income compared to pretax earnings, as well as tax credits from investments in low-income housing tax credit projects.

Current wording

*Provision for Income Taxes.*Provision for income taxes was $2.71million for the nine months ended September 30, 2025, compared to $1.34 million for the nine months ended September 30, 2024. The effective tax rate was 21.1% for the current period and 17.5% for the nine months ended September 30, 2024. The effective tax rate has started to rise as the Company’s pretax earnings have increased at a faster pace than tax-exempt income.

Previous wording

The Company's available borrowing capacity was approximately$463.00 million as of June 30, 2025 and$404.00 million as of December 31, 2024.

Current wording

The Company's available borrowing capacity was approximately $508.00 million as of September 30, 2025 and$404.00 million as of December 31, 2024.

Previous wording

Brokered deposits are another source of funding the Bank may utilize from time to time. As of June 30, 2025, the Bank had$1.43 million in brokered certificates and$5.53 million in brokered money market deposits. As of December 31, 2024, the Bank had no brokered certificates and $5.57 million in brokered money market deposits. Policy limits for brokered deposits are set at 10% of assets.

Current wording

Brokered deposits are another source of funding the Bank may utilize from time to time. As of September 30, 2025, the Bank had no brokered certificates and $5.53 million in brokered money market deposits. As of December 31, 2024, the Bank had no brokered certificates and $5.57 million in brokered money market deposits. Policy limits for brokered deposits are set at 10% of assets.

Previous wording

In addition to bank level liquidity management, Eagle must manage liquidity at the parent company level for various operating needs, including the servicing of debt, the payment of dividends on our common stock, share repurchases, payment of general corporate expense, and potential capital infusions into subsidiaries. The primary source of liquidity for Eagle consists of dividends from the Bank, which is governed by certain rules and regulations of the Montana Division of Banking and Financial Institutions and the Federal Reserve, and access to capital markets. Eagle has a $15.00 million line of credit with a correspondent bank. There was no outstanding balance for this line of credit at June 30, 2025 or December 31, 2024. Eagle's ability to receive dividends from the Bank in future periods will depend on several factors, including, without limitation, the Bank's future profits, asset quality, liquidity, and overall condition. In addition, both the Montana Division of Banking and Financial Institutions and Federal Reserve may require approval to pay dividends, based on certain regulatory statutes and limitations.

Current wording

In addition to bank level liquidity management, Eagle must manage liquidity at the parent company level for various operating needs, including the servicing of debt, the payment of dividends on our common stock, share repurchases, payment of general corporate expense, and potential capital infusions into subsidiaries. The primary source of liquidity for Eagle consists of dividends from the Bank, which is governed by certain rules and regulations of the Montana Division of Banking and Financial Institutions and the Federal Reserve, and access to capital markets.

Previous wording

As of June 30, 2025, the Bank’s internally determined measurement of sensitivity to interest rate movements as measured by a 200-basis point rise in interest rates scenario, increased the economic value of equity (“EVE”) by 1.2% compared to an increase of 1.7% at December 31, 2024. A 200-basis point decrease in interest rates scenario decreased EVE by 6.9% compared to a decrease of 7.9%at December 31, 2024. The Bank is within the guidelines set forth by the Board of Directors for interest rate risk sensitivity in rising interest rate scenarios.

Current wording

As of September 30, 2025, the Bank’s internally determined measurement of sensitivity to interest rate movements as measured by a 200-basis point rise in interest rates scenario, increased the economic value of equity (“EVE”) by 2.4% compared to an increase of 1.7% at December 31, 2024. A 200-basis point decrease in interest rates scenario decreased EVEby 8.3% compared to a decrease of 7.9%at December 31, 2024. The Bank is within the guidelines set forth by the Board of Directors for interest rate risk sensitivity in rising interest rate scenarios.

Previous wording

During the quarter ended September 30, 2024, Management performed a quantitative goodwill impairment test with assistance from a third-party valuation specialist. The interim determination was primarily driven by a revision in the Company’s earnings outlook in comparison to budget. A weighted average of both the market and income approaches was used in valuing the reporting unit’s fair value. The interim goodwill impairment assessment as of August 31, 2024 concluded that goodwill was not impaired. Our quantitative annual impairment test as of October 31, 2024 also did not result in impairment. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Management will continue to monitor events that could influence this conclusion in the future.

Current wording

During the quarter ended September 30, 2024, Management performed a quantitative goodwill impairment test with assistance from a third-party valuation specialist. The interim determination was primarily driven by a revision in the Company’s earnings outlook in comparison to budget. A weighted average of both the market and income approaches was used in valuing the reporting unit’s fair value. The interim goodwill impairment assessment as of August 31, 2024 concluded that goodwill was not impaired. Our quantitative annual impairment test as of October 31, 2024 also did not result in impairment. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment. Any resulting impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. Management will continue to monitor events that could influence this conclusion in the future andwill perform its annual goodwill impairment test as of October 31, 2025.