Eagle Bancorp Montana, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
EBMT$20.55-1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001437749-25-033182
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001437749-26-015453
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 99 previous paragraphs and 81 current paragraphs.
47 unchanged; 32 reworded; 1 added; 14 removed; 6 previous and 1 current paragraphs rearranged.
Tables are not compared: 18 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Net Interest Margin ("NIM"). Net interest margin for the three months ended March 31, 2026 was 4.11%, an increase of 37 basis points compared to March 31, 2025. The increase in NIM reflects lower funding costs and improved balance sheet leverage through a favorable funding mix and reduced borrowings, with stable yields on interest‑earning assets.
Removed paragraphs (14)
Previous report
On October 1, 2025, the Company redeemed all of the 5.50% fixed-to-floating rate subordinated notes due July 1, 2030, having an aggregate principal amount of $15.00 million. The Company utilized its line of credit with a correspondent bank to finance the redemption payment. The Company has drawn $15.00 million on the line of credit, which has a two-year maturity and has a variable interest rate equal to 0.50% below the prime rate as published in the Wall Street Journal.
Previous report
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 report
(1) Includes loans held-for-sale.
Previous report
*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 report
*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 report
*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 report
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 report
*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 report
*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 report
On October 1, 2025, the Company redeemed all of its outstanding 5.50% fixed-to-floating rate subordinated notes due July 1, 2030, having an aggregate principal amount of $15.00 million.
Previous report
During the first quarter of 2023, the FRB offered a new Bank Term Funding Program ("BTFP") for eligible depository institutions. The BTFP offered loans of up to one year in length to institutions pledging collateral eligible for purchase by FRB such as U.S. treasuries, agency securities, and mortgage-backed securities. These assets were valued at par. In March of 2024, the Company accessed borrowings through the BTFP. In September of 2024, the Company paid off the borrowings.
Previous report
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.
Previous report
The excess of consideration paid over fair value of net assets acquired is recorded as goodwill. Goodwill is not amortized but is tested at least annually for impairment or more frequently if events occur or circumstances change that indicate impairment may exist. A goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value. An impairment charge is recorded for the amount by which the carrying amount exceeds the reporting unit’s fair value. Estimating the fair value of the reporting unit requires the use of inputs and assumptions including projected earnings of the Company in future years for which there is inherent uncertainty.
Previous report
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.
Reworded paragraphs (32)
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 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.
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 the three months ended March 31, 2026, as compared to the same period of 2025. The following should be read in conjunction with the Company's Consolidated Financial Statements, and accompanying Notes thereto, for the year ended December 31, 2025, included in Eagle's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on March 9, 2026, 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 months ended March 31, 2026, 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 was decreased to 4.25% during the nine months ended September 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 3.75% during the year ended December 31, 2025. The rate remained at 3.75% during the three months ended March 31, 2026.
Previous 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.
Current wording
Total assets were$2.09 billion at March 31, 2026, a decrease of $14.52 million, or 0.7%, from $2.11 billion at December 31, 2025. Loans receivable, net increased by $207,000 from December 31, 2025. Securities available-for-sale decreased $6.81 million, or 2.4%, from December 31, 2025. Total liabilities were $1.90 billion at March 31, 2026, a decrease of $15.66 million, or 0.8%, from $1.91 billion at December 31, 2025. The decrease was largely due to a decrease in FHLB advances, offset by an increase in total deposits. Total borrowings decreased $11.32 million from December 31, 2025 and total deposits increased $4.48 million from December 31, 2025. Total shareholders’ equity increased $1.15 million, or 0.6%, from December 31, 2025.
Previous 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.
Current wording
Securities available-for-sale were$274.89 million at March 31, 2026, a decrease of $6.80 million, or 2.4%from $281.69 million at December 31, 2025. The decrease was primarily due to maturity, principal payments and call activity of $3.89 million and a decrease in fair value of $2.72 million.
Previous 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.
Current wording
Total loans, netincreased $207,000 to $1.50 billion at March 31, 2026 from $1.50 billion at December 31, 2025. The increase was largely driven by an increase in total commercial real estate loans of $7.79 million, an increase in total residential loans of $4.99 million and an increase of $1.21 million in home equity loans. The increases were largely offset by a decrease of $12.45 million in total commercial loans and a decrease of $1.27 million in consumer loans.
Previous 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.
Current wording
Total loan originations were $170.95 million for thethree months ended March 31, 2026. Total residential 1-4 family originations were $91.77 million, which includes $69.26 million of loans held-for-sale originations. Total commercial originations were $45.38 million. Total commercial real estate originations were $25.71 million. Home equity loan originations totaled $5.98 million. Consumer loan originations totaled $2.11 million. Loans held-for-sale increased by $2.45 million to $9.90 million at March 31, 2026 from $7.45 million at December 31, 2025.
Previous wording
Generally, our collection procedures provide that when a loan is 15 or more days delinquent, the borrower is sent a past due notice. If the loan becomes 30 days delinquent, the borrower is sent a written delinquency notice requiring payment. If the delinquency continues, subsequent efforts are made to contact the delinquent borrower, including face to face meetings and counseling to resolve the delinquency. All collection actions are undertaken with the objective of compliance with the Fair Debt Collection Act.
Current wording
Generally, our collection procedures provide that when a loan is 15 or more days delinquent, the borrower is sent a past due notice. If the loan becomes 30 days delinquent, the borrower is sent a written delinquency notice requiring payment. If the delinquency continues, subsequent efforts are made to contact the delinquent borrower, including face to face meetings and counseling to resolve the delinquency. All collection actions are undertaken with the objective of compliance with the relevant state and federal banking laws, including the Fair Debt Collection Act.
Previous wording
For mortgage loans and home equity loans, if the borrower is unable to cure the delinquency or reach a payment agreement, we will institute foreclosure actions. If a foreclosure action is taken and the loan is not reinstated, paid in full or refinanced, the property is sold at judicial sale at which we may be the buyer if there are no adequate offers to satisfy the debt. Any property acquired as the result of foreclosure, or by deed in lieu of foreclosure, is classified as real estate owned until such time as it is sold or otherwise disposed of. When real estate owned is acquired, it is recorded at its fair market value less estimated selling costs. The initial recording of any loss is charged to the allowance for credit losses. Subsequent write-downs are recorded as a charge to operations. As of September 30, 2025 and December 31, 2024 there was $86,000 and $45,000, respectively, of real estate owned and other repossessed property.
Current wording
For mortgage loans and home equity loans, if the borrower is unable to cure the delinquency or reach a payment agreement, we will institute foreclosure actions. If a foreclosure action is taken and the loan is not reinstated, paid in full or refinanced, the property is sold at judicial sale at which we may be the buyer if there are no adequate offers to satisfy the debt. Any property acquired as the result of foreclosure, or by deed in lieu of foreclosure, is classified as real estate owned until such time as it is sold or otherwise disposed of. When real estate owned is acquired, it is recorded at its fair market value less estimated selling costs. The initial recording of any loss is charged to the allowance for credit losses. Subsequent write-downs are recorded as a charge to operations. As of March 31, 2026 and December 31, 2025 there was $70,000 and $98,000, respectively, of real estate owned and other repossessed property.
Previous 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.
Current wording
Nonaccrual loans as of March 31, 2026 and December 31, 2025 include $721,000 and $460,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.
Previous 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.
Current wording
Commercial real estate loans made up $667.69 million or 43.9% of the Bank's total loan portfolio at March 31, 2026, compared to $635.97 million or 41.9% at December 31, 2025. 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% by property type as of March 31, 2026.
Previous 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.
Current wording
Deposits increased by $4.48 million, or 0.3%, from December 31, 2025 to March 31, 2026. Time certificates of deposit increased by $10.61 million, savings increased by $6.34 million and money market increased by $2.50 million. These increases were partially offset by decreases in noninterest checking of $14.61 million, and interest bearing checking of $371,000.
Previous 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.
Current wording
The estimated amount of uninsured deposits was $354.06 million, or 19.6%, of total deposits at March 31, 2026, compared to $354.59 million, or 19.5%, of total deposits at December 31, 2025.
Previous 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.
Current wording
Total borrowings decreased by $11.32 million, or 13.7%, to $71.15 million at March 31, 2026 from $82.47 million at December 31, 2025, due to a decrease in FHLB advances and other borrowings.
Previous 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.
Current wording
Total shareholders’ equity increased by $1.15 million, or 0.6%, to $192.96 million at March 31, 2026 from $191.81 million at December 31, 2025. The increase was primarily attributed to net income of $3.98 million. The increase was largely offset by an increase in unrealized losses of securities available for sale of $2.01 million and dividends paid of $1.16 million.
Previous wording
The following table includes average balances for financial condition items, as well as interest and dividends and average yields related to the average balances. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields include the effect of deferred fees and discounts and premiums that are amortized or accreted to interest income or expense.
Current wording
The following table includes average balances for financial condition items, as well as interest and dividends and average yields related to the average balances. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances and reported in loans receivable as loans carrying a zero yield. The yields include the effect of deferred fees and discounts and premiums that are amortized or accreted to interest income or expense.
Previous wording
(3) Net interest margin represents income before the provision for loan losses divided by average interest-earning assets.
Current wording
(3) Net interest margin represents income before the provision for credit losses divided by average interest-earning assets.
Previous 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.
Current wording
Net Income. Eagle’s net income for the three months ended March 31, 2026, was $3.98 million, compared to $3.24 million for the three months ended March 31, 2025. The increase of $745,000 was due to an increase in net interest income after provision for credit losses of $1.56 million and an increase in noninterest income of $865,000. These were partially offset by an increase in noninterest expense of $1.21 million and an increase in the provision for income taxes of $479,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.51. Basic earnings per common share and diluted earnings per common share were both $0.41 for the three months ended March 31, 2025.
Previous 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.
Current wording
*Net Interest Income.*Net interest income increased to $18.70 million for the three months ended March 31, 2026, from $16.90 million for the three months ended March 31, 2025. The increase of $1.80 million, or 10.7%, was primarily the result of a decrease in interest expense of $1.65 million.
Previous 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.
Current wording
*Interest and Dividend Income.*Interest and dividend income was $26.22 million for the three months ended March 31, 2026, compared to $26.07 million for the three months ended March 31, 2025, an increase of $153,000, or 0.6%. Interest and fees on loans increased to $23.57 million for the three months ended March 31, 2026, from $23.32 million for the three months ended March 31, 2025. This increase of $250,000, or 1.1%, was due in part to an increase in the average yield on loans, with average loan balances remaining relatively stable, period over period. The average interest rate earned on loans receivable increased by eight basis points, from 6.19% for the three months ended March 31, 2025, to 6.27% for the current period. Interest accretion on purchased loans was $185,000 for the three months ended March 31, 2026, which resulted in a four-basis point increase in net interest margin compared to $172,000 for the three months ended March 31, 2025, which also resulted in a four-basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, remained relatively stable at $1.53 billion for the three months ended March 31, 2026 and 2025. Interest on investment securities available-for-sale decreased by $236,000, or 9.6%, period over period, primarily due to the decrease in average balances for investments from $293.27 million for the three months ended March 31, 2025, to $280.55 million for the three months ended March 31, 2026. In addition, average interest rates earned on investments decreased from 3.39% for the three months ended March 31, 2025, to 3.20% for the three months ended March 31, 2026.
Previous 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.
Current wording
*Interest Expense.*Total interest expense was $7.52 million for the three months ended March 31, 2026, decreasing from $9.17 million for the three months ended March 31, 2025. The decrease of $1.65 million, or 18.0%, was primarily due to a decrease of $1.44 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 $138.83 million for the three months ended March 31, 2025, to $30.58 million for the three months ended March 31, 2026. The average rate paid on FHLB advances and other borrowings increased from 4.75% for the three months ended March 31, 2025, to 5.46% for the three months ended March 31, 2026 due to the payoff of lower-cost borrowings. Interest expense on deposits decreased minimally by $210,000, period over period. The overall average rate on total deposits was down from 1.67% for the three months ended March 31, 2025, compared to 1.52% for the three months ended March 31, 2026. However, the average balance for total deposits increased from $1.67 billion for the three months ended March 31, 2025, to $1.78 billion for the three months ended March 31, 2026.
Previous 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.
Current wording
*Provision for Credit Losses.*Provision for credit losses was $279,000 for the three months ended March 31, 2026, compared to $42,000 for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026, included an increase in the provision for credit losses on loans to $109,000, and unchanged provision for unfunded commitments of $170,000.
Previous 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.
Current wording
*Noninterest Income.*Total noninterest income was $4.88 million for the three months ended March 31, 2026, compared to $4.02 million for the three months ended March 31, 2025, an increase of $865,000, or 21.5%. This increase was primarily due to an increase of $490,000 in other noninterest income due to insurance proceeds of $484,000 received for the three months ended March 31,2026 due to smoke damage caused by a furnace fire and other damage from a windstorm. In addition, mortgage banking, net increased $309,000 to $2.43 million for the three months ended March 31, 2026, from $2.13 million for the three months ended March 31, 2025. Mortgage banking, net, includes net gain on sale of mortgage loans, which increased to $1.68 million for the three months ended March 31, 2026, compared to $1.35 million for the three months ended March 31, 2025. During the three months ended March 31, 2026, $66.08 million residential mortgage loans were sold, compared to $42.80 million in the three months ended March 31, 2025. However, gross margin levels decreased from 3.15% for the three months ended March 31, 2025, to 2.54% for the three months ended March 31, 2026.
Previous 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.
Current wording
*Noninterest Expense.*Noninterest expense was $18.21 million for the three months ended March 31, 2026, compared to $17.01 million for the three months ended March 31, 2025, an increase of $1.21 million, or 7.1%. The driver of the increase was salaries and employee benefits, which increased $1.15 million.
Previous 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.
Current wording
*Provision for Income Taxes.*Provision for income taxes was $1.11 million for the three months ended March 31, 2026, compared to $631,000 for the three months ended March 31, 2025. The effective tax rate was 21.8% for the current period compared to 16.3% for the three months ended March 31, 2025. The effective tax rate increased as the Company’s pretax earnings have increased at a faster pace than tax-exempt income.
Previous wording
The Bank is required by regulation to maintain sufficient levels of liquidity for safety and soundness purposes. Appropriate levels of liquidity will depend upon the types of activities in which the company engages. For internal reporting purposes, the Bank uses policy minimums of 1.0% and 8.0% for “basic surplus” and “basic surplus with FHLB” as internally defined. In general, the “basic surplus” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of CD maturities and other deposits that may leave the Bank in the next 90 days divided by total assets. “Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moines. The Bank exceeded those minimum ratios as of September 30, 2025 and December 31, 2024.
Current wording
The Bank is required by regulation to maintain sufficient levels of liquidity for safety and soundness purposes. Appropriate levels of liquidity will depend upon the types of activities in which the company engages. For internal reporting purposes, the Bank uses policy minimums of 1.0% and 8.0% for “basic surplus” and “basic surplus with FHLB” as internally defined. In general, the “basic surplus” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of CD maturities and other deposits that may leave the Bank in the next 30 days divided by total assets. “Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moines. The Bank exceeded those minimum ratios as of March 31, 2026 and December 31, 2025.
Previous wording
The Bank’s primary sources of funds are deposits, repayment of loans and mortgage-backed securities, maturities of investments, funds provided from operations, advances from the FHLB of Des Moines and other borrowings. Scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable. However, other sources of funds, such as deposit flows and loan prepayments, can be greatly influenced by the general level of interest rates, economic conditions and competition. The Company uses liquidity resources principally to fund existing and future loan commitments. It also uses them to fund maturing certificates of deposit and demand deposit withdrawals, for investment purposes, to meet operating expenses and capital expenditures, for dividend payments and for stock repurchases to maintain adequate liquidity levels.
Current wording
The Bank’s primary sources of funds are deposits, repayment of loans and mortgage-backed securities, maturities of investments, funds provided from operations, advances from the FHLB of Des Moines and other borrowings. Scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable. However, other sources of funds, such as deposit flows and loan prepayments, can be greatly influenced by the general level of interest rates, economic conditions and competition. The Company uses liquidity resources principally to fund existing and future loan commitments. It also uses them to fund maturing certificates of deposit and demand deposit withdrawals, for investment purposes, to meet operating expenses and capital expenditures, for dividend payments, for stock repurchases and to maintain adequate liquidity levels.
Previous 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.
Current wording
The Company's available borrowing capacity was approximately $593.00 million as of March 31, 2026 and $601.00 million as of December 31, 2025.
Previous 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.
Current wording
Brokered deposits are another source of funding the Bank may utilize from time to time. As of March 31, 2026, the Bank had no brokered certificates and $2.02 million in brokered money market deposits. As of December 31, 2025, the Bank had no brokered certificates and $3.21 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.
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 expenses, 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
Eagle has a $15.00 million line of credit with a correspondent bank. There was no outstanding balance for this line of credit at September 30, 2025 or December 31, 2024. However, the Company utilized this line of credit on October 1, 2025 to finance the redemption payment for the subordinated notes of $15.00 million. The line of credit has a two-year maturity and a variable interest rate equal to 0.50% below the prime rate as published in the Wall Street Journal. The draw is secured by the assets of the Company and includes certain financial covenants and negative covenants. Outstanding draws on the line impact remaining borrowing capacity for the Company’s correspondent bank lines of credit included above
Current wording
Eagle has a $15.00 million line of credit with a correspondent bank. The outstanding balance for this line of credit was $15.00 million at March 31, 2026 and December 31, 2025. The line of credit was used to finance the redemption payment for subordinated notes of $15.00 million. The line of credit has a two-year maturity and a variable interest rate equal to 0.50% below prime. The rate was 6.25% as of March 31, 2026. The draw is secured by the assets of the Company and includes certain financial covenants and negative covenants. The Company is in compliance with the covenants under the line of credit. Outstanding draws on the line impact remaining borrowing capacity for the Company’s correspondent bank lines of credit included above.
Previous 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.
Current wording
As of March 31, 2026, 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 3.2% compared to an increase of 3.4%at December 31, 2025. A 200-basis point decrease in interest rates scenario decreased EVEby 9.1% compared to a decrease of 9.3% at December 31, 2025. 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
The accounting and financial reporting policies of Eagle are in accordance with generally accepted accounting principles ("GAAP") and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Eagle has identified certain of its accounting policies as “critical accounting policies,” consisting of those related to the allowance for credit losses and business combinations. In determining which accounting policies are critical in nature, Eagle has identified the policies that require significant judgment or involve complex estimates. It is management's practice to discuss critical accounting policies with the Board of Directors' Audit Committee on a periodic basis, including the development, selection, implementation, and disclosure of the critical accounting policies. The application of these policies has a significant impact on Eagle’s unaudited interim consolidated financial statements. Eagle’s financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 – Organization and Summary of Significant Accounting Policies" in Eagle’s 2024 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance. There have been no significant changes to the accounting policies, estimates, and assumptions, or the judgments affecting the application of these estimates and assumptions from those disclosed in Eagle’s 2024 Form 10-K, other than the following:
Current wording
The accounting and financial reporting policies of Eagle are in accordance with generally accepted accounting principles ("GAAP") and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Eagle has identified certain of its accounting policies as “critical accounting policies,” consisting of those related to the allowance for credit losses and business combinations. In determining which accounting policies are critical in nature, Eagle has identified the policies that require significant judgment or involve complex estimates. It is management's practice to discuss critical accounting policies with the Board of Directors' Audit Committee on a periodic basis, including the development, selection, implementation, and disclosure of the critical accounting policies. The application of these policies has a significant impact on Eagle’s unaudited interim consolidated financial statements. Eagle’s financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 – Organization and Summary of Significant Accounting Policies" in Eagle’s 2025 Form 10-K, as filed with the SEC on March 9, 2026, should be reviewed for a greater understanding of how we record and report our financial performance. There have been no significant changes to the accounting policies, estimates, and assumptions, or the judgments affecting the application of these estimates and assumptions from those disclosed in Eagle’s 2025 Form 10-K.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The Bank's regulatory capital was in excess of all applicable regulatory requirements and the Bank is deemed "well capitalized" pursuant to State of Montana and FRB rules as of December 31, 2025. The Bank's actual capital amounts and ratios as of December 31, 2025 are presented in the table below and all of the ratios, with the exception of the Tier 1 capital adjusted total average assets ratio, include the capital conservation buffer of 2.50%.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
(2) Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities.
Previous report — wording carried elsewhere
(3) Net interest margin represents income before the provision for loan losses divided by average interest-earning assets.
Previous report — wording carried elsewhere
(4) For purposes of this table, tax exempt income is not calculated on a tax equivalent basis.
Previous report — wording carried elsewhere
The following compares the results of operations for the nine months ended September 30, 2025 and 2024.
Previous report — wording carried elsewhere
*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 report — wording carried elsewhere
*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.