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, 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 and six months ended June 30, 2026, 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 and nine months ended September 30, 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 and nine months ended September 30, 2026, are not necessarily indicative of the future results that may be attained for the entire year or other interim periods.

Previous wording

The Bank has focused on diversifying the loan portfolio over the past decade, adding commercial and agricultural loans to the strong mortgage lending proficiency. Loan originations represented by single-family residential mortgages enabled the Bank to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.). The Bank has grown the commercial loan portfolio in both real estate and non-real estate, and further added agricultural loans, which have a shorter term and slightly higher interest rate, through acquisitions. The purpose of diversification is to mitigate the Bank’s exposure to specific market segments, as well as to improve our ability to manage our interest rate spread. This has provided additional interest income and improved interest rate sensitivity. The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it now maintains a significant loan serviced portfolio which provides a steady source of fee income. Fee income is also supplemented with fees generated from deposit accounts. The Bank has a high percentage of non-maturity deposits, such as checking accounts and savings accounts, which allows management flexibility in managing its spread. Non-maturity deposits and certificates of deposits do not automatically reprice as interest rates rise. Gain on sale of loans also provides significant noninterest income in periods of high mortgage loan origination volumes. Such income will be, and has recently been, adversely affected in periods of lower mortgage activity.

Current wording

The Bank has focused on diversifying the loan portfolio over the past decade, adding commercial and agricultural loans to the strong mortgage lending proficiency. Loan originations represented by single-family residential mortgages enabled the Bank to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.). The Bank has grown the commercial loan portfolio in both real estate and non-real estate, and further added through acquisitions agricultural loans, which have a shorter term and slightly higher interest rate. The purpose of diversification is to mitigate the Bank’s exposure to specific market segments, as well as to improve our ability to manage our interest rate spread. This has provided additional interest income and improved interest rate sensitivity. The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it maintains a significant loan serviced portfolio which provides a steady source of fee income. Fee income is also supplemented with fees generated from deposit accounts. The Bank has a high percentage of non-maturity deposits, such as checking accounts and savings accounts, which allows management flexibility in managing its spread. Non-maturity deposits and certificates of deposits do not automatically reprice as interest rates rise. Gain on sale of loans also provides significant noninterest income in periods of high mortgage loan origination volumes. Such income will be, and has recently been, adversely affected in periods of lower mortgage activity.

Previous wording

Management continues to focus on improving the Bank’s earnings. Management believes the Bank needs to continue to concentrate on increasing net interest margin, other areas of fee income and control of operating expenses to achieve earnings growth going forward. Management’s strategy of growing the loan portfolio and deposit base is expected to help achieve these goals as follows: loans typically earn higher rates of return than investments; a larger deposit base should yield higher fee income; increasing the asset base will reduce the relative impact of fixed operating costs. The biggest challenge to this strategy is funding growth in an efficient manner. It may become more difficult to maintain deposit growth due to significant competition, the current conditions in the banking industry and possible reduced customer demand for deposits as customers may shift into other asset classes.

Current wording

Management continues to focus on improving the Bank’s earnings. Management believes the Bank needs to continue to concentrate on increasing net interest margin, other areas of fee income and control of operating expenses to achieve earnings growth going forward. Management’s strategy of growing the loan portfolio and deposit base is expected to help achieve these goals as follows: loans typically earn higher rates of return than investments; a larger deposit base should yield higher fee income; increasing the asset base will reduce the relative impact of fixed operating costs. The biggest challenge to this strategy is funding growth in an efficient manner. It may become more difficult to maintain deposit growth due to significant competition, the current conditions in the banking industry and possible reduced customer demand for deposits.

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 3.75% during the year ended December 31, 2025. The rate remained at 3.75% during the six months ended June 30, 2026.

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 was increased to 4.00% during the nine months ended September 30, 2026.

Previous wording

Total assets were$2.13 billion at June 30, 2026, an increase of $19.48 million, or 0.9%, from $2.11 billion at December 31, 2025. Loans receivable, net increased by $39.06 million from December 31, 2025. Securities available-for-sale increased $3.98 million, or 1.4%, from December 31, 2025. Total liabilities were $1.93 billion at June 30, 2026 an increase of $13.89 million, or 0.7%, from $1.91 billion at December 31, 2025. The increase was largely due to an increase in FHLB advances. Total borrowings increased $14.14 million from December 31, 2025 and total deposits increased $8.61 million from December 31, 2025. Total shareholders’ equity increased $5.60 million, or 2.9%, from December 31, 2025.

Current wording

Total assets were$2.28 billion at September 30, 2026, an increase of $175.66 million, or 8.3%, from $2.11 billion at December 31, 2025. Loans receivable, net increased by $196.24 million, or 13.1%, from December 31, 2025. Securities available-for-sale decreased $8.87 million, or 3.1%, from December 31, 2025. Total liabilities were $2.09 billion at September 30, 2026, an increase of $175.35 million, or 9.2%, from $1.91 billion at December 31, 2025. The increase was largely due to an increase in FHLB advances. Total borrowings increased $158.83 million from December 31, 2025 and total deposits increased $20.50 million from December 31, 2025. Total shareholders’ equity increased $315,000 from December 31, 2025.

Previous wording

Securities available-for-sale were$285.68 million at June 30, 2026, an increase of $3.99 million, or 1.4%, from $281.69 million at December 31, 2025. The increase was primarily due to purchasing activity of $15.19 million, which was partially offset by maturities, principal payments and call activity of $10.20 million.

Current wording

Securities available-for-sale were$272.82 million at September 30, 2026, a decrease of $8.87 million, or 3.1%, from $281.69 million at December 31, 2025. The decrease was primarily due to maturities, principal payments, and call activity of $12.79 million and a decrease in fair value of $10.70 million. This was partially offset by purchasing activity of $15.19 million.

Previous wording

Total loans increased $39.32 million to $1.56 billion at June 30, 2026 from $1.52 billion at December 31, 2025. The increase was attributable to increases in total commercial real estate loans of $21.67 million, total commercial loans of $14.48 million, total residential loans of $5.59 million, and home equity loans of $550,000. The increases were partially offset by a decrease of $2.97 million in consumer loans.

Current wording

Total loans increased $198.36 million to $1.72 billion at September 30, 2026 from $1.52 billion at December 31, 2025. The increase was attributable to increases in total commercial real estate loans of $142.63 million, total commercial loans of $35.76 million, total residential loans of $15.44 million, and home equity loans of $7.86 million. The increases were partially offset by a decrease of $3.33 million in consumer loans.

Previous wording

Total loan originations were $393.72 million for thesix months ended June 30, 2026. Total residential 1-4 family originations were $187.24 million, which includes $147.29 million of loans held-for-sale originations. Total commercial originations were $114.70 million. Total commercial real estate originations were $69.29 million. Home equity loan originations totaled $17.52 million. Consumer loan originations totaled $4.97 million. Loans held-for-sale increased by $8.52 million to $15.97 million at June 30, 2026 from $7.45 million at December 31, 2025.

Current wording

Total loan originations were $721.99 million for thenine months ended September 30, 2026. Total residential 1-4 family originations were $293.87 million, which included $219.22 million of loans held-for-sale originations. Total commercial real estate originations were $215.42 million. Total commercial originations were $173.64 million. Home equity loan originations totaled $31.25 million. Consumer loan originations totaled $7.81 million. Loans held-for-sale increased by $5.36 million to $12.81 million at September 30, 2026 from $7.45 million at December 31, 2025.

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 June 30, 2026 and December 31, 2025 there was $70,000 and $98,000, 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 September 30, 2026 and December 31, 2025 there was $43,000 and $98,000, respectively, of real estate owned and other repossessed property.

Previous wording

Nonaccrual loans as of June 30, 2026 and December 31, 2025 include $715,000 and $460,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.

Current wording

Nonaccrual loans as of September 30, 2026 and December 31, 2025 include $1.92 million and $460,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.

Previous wording

Commercial real estate loans made up $684.38 million, or 43.9%, of the Bank's total loan portfolio at June 30, 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 31% to 48% by property type as of June 30, 2026.

Current wording

Commercial real estate loans made up $784.71 million, or 45.69%, of the Bank's total loan portfolio at September 30, 2026, compared to $635.97 million, or 41.9%, at December 31, 2025. During the three months ended September 30, 2026, the Bank reassessed the loan classification of real estate holding companies based on the qualifying criteria for owner occupied loans defined in regulatory reporting guidance. As a result, commercial real estate loans totaling $66.1 million were reclassified from non-owner occupied to owner occupied as of September 30, 2026. The Bank's commercial real estate loans are primarily permanent loans secured by improved property such as office buildings, retail stores, commercial warehouses, and multifamily. 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 31% to 58% by property type as of September 30, 2026.

Previous wording

Deposits increased by $8.61 million, or 0.5%, from December 31, 2025 to June 30, 2026. Money market increased by $10.40 million, time certificates of deposit increased by $5.26 million and savings increased by $2.60 million. These increases were partially offset by decreases in interest-bearing checking of $5.73 million and noninterest checking of $3.92 million.

Current wording

Deposits increased by $20.50 million, or 1.2%, from December 31, 2025 to September 30, 2026. Money market increased by $26.62 million, time certificates of deposit increased by $3.51 million, noninterest checking increased by $1.59 million and savings increased by $482,000. These increases were partially offset by a decrease in interest-bearing checking of $11.70 million.

Previous wording

The Bank's estimated amount of uninsured deposits was $359.82 million, or 19.9%, of deposits including accrued interest at June 30, 2026, compared to $354.59 million, or 19.5%, at December 31, 2025.

Current wording

The Bank's estimated amount of uninsured deposits was $369.27 million, or 20.2%, of deposits including accrued interest at September 30, 2026, compared to $354.59 million, or 19.5%, at December 31, 2025.

Previous wording

Total borrowings increased by $14.14 million, or 17.1%, to $96.61 million at June 30, 2026 from $82.47 million at December 31, 2025, due to an increase in FHLB advances and other borrowings.

Current wording

Total borrowings increased by $158.83 million, or 192.6%, to $241.30 million at September 30, 2026 from $82.47 million at December 31, 2025, due to an increase in FHLB advances and other borrowings, which were utilized to support loan growth.

Previous wording

Total shareholders’ equity increased by $5.60 million, or 2.9%, to $197.41 million at June 30, 2026 from $191.81 million at December 31, 2025. The increase was primarily attributed to net income of $7.70 million. The increase was partially offset by dividends paid of $2.31 million and other comprehensive loss, net of tax of $462,000.

Current wording

Total shareholders’ equity increased by $315,000 to $192.13 million at September 30, 2026 from $191.81 million at December 31, 2025. The increase was primarily attributed to net income of $10.71 million. The increase was partially offset by other comprehensive loss, net of tax of $7.89 million and dividends paid of $3.49 million. The increase in other comprehensive loss, net of tax was primarily a result of increased interest rates.

Previous wording

Net Interest Margin ("NIM"). Net interest margin for the three months ended June 30, 2026 was 4.15%, an increase of 24 basis points compared to the three months ended June 30, 2025. Net interest margin for the six months ended June 30, 2026 was 4.13%, an increase of 31 basis points compared to the six months ended June 30, 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.

Current wording

Net Interest Margin ("NIM"). Net interest margin for the three months ended September 30, 2026 was 4.12%, an increase of 18-basis points compared to the three months ended September 30, 2025. Net interest margin for the nine months ended September 30, 2026 was 4.13%, an increase of 27-basis points compared to the nine months ended September 30, 2025. The increase in NIM reflects lower funding costs and improved balance sheet leverage through a favorable funding mix and reduced average borrowings, with stable yields on interest‑earning assets.

Previous wording

Net Income. Eagle’s net income for the three months ended June 30, 2026, was $3.72 million, compared to $3.24 million for the three months ended June 30, 2025. The increase of $478,000 was due to an increase in net interest income after provision for credit losses of $1.69 million and an increase in noninterest income of $210,000. These changes were partially offset by an increase in noninterest expense of $1.07 million and an increase in the provision for income taxes of $354,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.47. Basic and diluted earnings per common share were $0.42 and $0.41 for the three months ended June 30, 2025, respectively.

Current wording

Net Income. Eagle’s net income for the three months ended September 30, 2026, was $3.01 million, compared to $3.63 million for the three months ended September 30, 2025. The decrease of $616,000 was due to an increase in noninterest expenses of $993,000 and a decrease in net interest income after provision for credit losses of $498,000. These changes were partially offset by decrease in the provision for income taxes of $495,000 and an increase in noninterest income of $380,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.38. Basic and diluted earnings per common share were $0.47 and $0.46 for the three months ended September 30, 2025, respectively.

Previous wording

*Net Interest Income.*Net interest income increased to $37.84 million for the six months ended June 30, 2026, from $35.05 million for the six months ended June 30, 2025. The increase of $2.79 million, or 8.0%, was primarily the result of a decrease in interest expense of $3.18 million.

Current wording

Net Interest Income. Net interest income increased to $19.99 million for the three months ended September 30, 2026, from $18.69 million for the three months ended September 30, 2025. The increase of $1.30 million, or 7.0%, was primarily the result of a decrease in interest expense of $1.14 million.

Previous wording

*Interest and Dividend Income.*Interest and dividend income was $26.61 million for the three months ended June 30, 2026, compared to $27.15 million for the three months ended June 30, 2025, a decrease of $539,000, or 2.0%. Interest and fees on loans decreased slightly to $24.09 million for the three months ended June 30, 2026, from $24.44 million for the three months ended June 30, 2025. This decrease of $354,000, or 1.4%, was largely due to a decrease in the average yield on loans, as well as marginally lower average loan balances period over period. The average interest rate earned on loans receivable decreased by seven basis points, from 6.31% for the three months ended June 30, 2025, to 6.24% for the current period. Interest accretion on purchased loans was $94,000 for the three months ended June 30, 2026, which resulted in a two-basis point increase in net interest margin compared to $607,000 for the three months ended June 30, 2025, which resulted in a 13-basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, remained relatively stable at $1.55 billion for the three months ended June 30, 2026 and 2025.

Current wording

*Interest and Dividend Income.*Interest and dividend income was $28.00 million for the three months ended September 30, 2026, compared to $27.83 million for the three months ended September 30, 2025, an increase of $164,000, or 0.6%. Interest and fees on loans increased slightly to $25.52 million for the three months ended September 30, 2026, from $25.21 million for the three months ended September 30, 2025. This increase of $305,000, or 1.2%, was due to a higher average loan balances, partially offset by a decline in the average yield on loans, period over period. Average balances for loans receivable, including loans held-for-sale, was $1.63 billion for the three months ended September 30, 2026, compared to $1.58 billon for the three months ended September 30, 2025, an increase of $44.52 million, or 2.8%. However, the average interest rate earned on loans receivable decreased by nine-basis points, from 6.32% for the three months ended September 30, 2025, to 6.23% for the current period. Interest accretion on purchased loans was $173,000 for the three months ended September 30, 2026, which resulted in a three-basis point increase in net interest margin compared to $234,000 for the three months ended September 30, 2025, which resulted in a five-basis point increase in net interest margin.

Previous wording

*Interest Expense. *Total interest expense was $7.47 million for the three months ended June 30, 2026, decreasing from $9.01 million for the three months ended June 30, 2025. The decrease of $1.53 million, or 17.0%, was primarily due to a decrease of $1.29 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $184.98 million for the three months ended June 30, 2025, to $74.26 million for the three months ended June 30, 2026. The average rate paid also decreased from 4.61% for the three months ended June 30, 2025, to 4.54% for the three months ended June 30, 2026. Interest expense on deposits decreased by $244,000, period over period. The average balance for total deposits increased from $1.71 billion for the three months ended June 30, 2025, to $1.78 billion for the three months ended June 30, 2026. However, the overall rate on total deposits was down from 1.62% for the three months ended June 30, 2025, compared to 1.49% for the three months ended June 30, 2026.

Current wording

*Interest Expense.*Total interest expense was $8.01 million for the three months ended September 30, 2026, decreasing from $9.15 million for the three months ended September 30, 2025. The decrease of $1.14 million, or 12.4%, was primarily due to a decrease in interest expense on deposits of $701,000, in addition to a decrease in interest expense on total borrowings of $434,000. The decrease in interest expense on deposits was driven by the overall rate on total deposits being down from 1.63% for the three months ended September 30, 2025, compared to 1.44% for the three months ended September 30,2026. However, the average balance for deposits increased from $1.75 billion for the three months ended September 30, 2025, to $1.79 billion for the three months ended September 30, 2026. Interest expense on total borrowings decreased by $434,000, period over period. The average rate paid decreased from 4.92% for the three months ended September 30, 2025, to 4.25% for the three months ended September 30, 2026. The average balance for total borrowings also decreased from $158.51 million for the three months ended September 30, 2025, to $143.15 million for the three months ended September 30, 2026.

Previous wording

*Provision for Credit Losses.*Provision for credit losses was $343,000 for the three months ended June 30, 2026, compared to $1.04 million the three months ended June 30, 2025. The provision for credit losses for the three months ended June 30, 2026, included the provision for credit losses on loans of $403,000 and a recapture of the provision for unfunded commitments of $60,000. The higher provision for 2025 was largely due to loan growth.

Current wording

*Provision for Credit Losses.*Provision for credit losses was $1.86 million for the three months ended September 30, 2026, compared to $62,000 the three months ended September 30, 2025. The provision for credit losses for the three months ended September 30, 2026, included the provision for credit losses on loans of $1.88 million and a recapture of the provision for unfunded commitments of $20,000. The higher provision for 2026 was largely due to loan growth and does not reflect any meaningful borrower specific deterioration.

Previous wording

*Noninterest Income.*Total noninterest income was $5.02 million for the three months ended June 30, 2026, compared to $4.81 million for the three months ended June 30, 2025, an increase of $210,000, or 4.4%. This increase was primarily due to an increase of $135,000 in other noninterest income.

Current wording

*Noninterest Income.*Total noninterest income was $5.10 million for the three months ended September 30, 2026, compared to $4.72 million for the three months ended September 30, 2025, an increase of $380,000, or 8.1%. This increase was primarily due to an increase of $339,000 in other noninterest income.

Previous wording

*Noninterest Expense. *Noninterest expense was $18.99 million for the three months ended June 30, 2026, compared to $17.93 million for the three months ended June 30, 2025, an increase of $1.07 million, or 5.9%. The driver of the increase was salaries and employee benefits, which increased $1.06 million. The largest components of the increase period over period were health insurance expense, which increased $521,000, and salaries expense, which increased $309,000.

Current wording

*Noninterest Expense.*Noninterest expense was $19.38 million for the three months ended September 30, 2026, compared to $18.39 million for the three months ended September 30, 2025, an increase of $993,000, or 5.4%. The driver of the increase was salaries and employee benefits, which increased $650,000. The largest component of this increase period over period was health insurance expense, which increased $544,000.

Previous wording

*Provision for Income Taxes. *Provision for income taxes was $1.11 million for the three months ended June 30, 2026, compared to $751,000 for the three months ended June 30, 2025. The effective tax rate was 22.9% for the current period compared to 18.8% for the three months ended June 30, 2025. The effective tax rate has increased as the Company’s pretax earnings increased at a faster pace than tax-exempt income.

Current wording

*Provision for Income Taxes.*Provision for income taxes was $831,000 for the three months ended September 30, 2026, compared to $1.33 million for the three months ended September 30, 2025. The effective tax rate was 21.6% for the current period compared to 26.8% for the three months ended September 30, 2025.

Previous wording

The following compares the results of operations for the six months ended June 30, 2026 and 2025.

Current wording

The following compares the results of operations for the nine months ended September 30, 2026 and 2025.

Previous wording

Net Income. Eagle’s net income for the six months ended June 30, 2026, was $7.70 million, compared to $6.48 million for the six months ended June 30, 2025. The increase of $1.22 million was due to an increase in net interest income after provision for credit losses of $3.25 million and an increase in noninterest income of $1.08 million. These changes were partially offset by an increase in noninterest expense of $2.27 million and an increase in the provision for income taxes of $833,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.98. Basic earnings per common share and diluted earnings per common share were both $0.83 for the six months ended June 30, 2025.

Current wording

Net Income. Eagle’s net income for the nine months ended September 30, 2026, was $10.71 million, compared to $10.11 million for the nine months ended September 30, 2025. The increase of $607,000 was due to an increase in net interest income after provision for credit losses of $2.75 million and an increase in noninterest income of $1.46 million. These changes were partially offset by an increase in noninterest expense of $3.26 million and an increase in the provision for income taxes of $338,000. For the current period, basic earnings per common share and diluted earnings per common share were $1.37 and $1.36, respectively. Basic earnings per common share and diluted earnings per common share were $1.30 and $1.29 for the nine months ended September 30, 2025, respectively.

Previous wording

*Net Interest Income.*Net interest income increased to $19.14 million for the three months ended June 30, 2026, from $18.15 million for the three months ended June 30, 2025. The increase of $993,000, or 5.5%, was primarily the result of a decrease in interest expense of $1.53 million, partially offset by a decrease in interest and dividend income of $539,000.

Current wording

*Net Interest Income.*Net interest income increased to $57.83 million for the nine months ended September 30, 2026, from $53.74 million for the nine months ended September 30, 2025. The increase of $4.09 million, or 7.6%, was primarily the result of a decrease in interest expense of $4.32 million.

Previous wording

*Interest Expense.*Total interest expense was $14.99 million for the six months ended June 30, 2026, decreasing from $18.17 million for the six months ended June 30, 2025. The decrease of $3.18 million, or 17.5%, was primarily due to a decrease of $2.73 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $191.49 million for the six months ended June 30, 2025, to $74.65 million for the six months ended June 30, 2026. The average rate paid also decreased from 4.66% for the six months ended June 30, 2025, to 4.59% for the six months ended June 30, 2026. Interest expense on deposits decreased by $454,000, period over period. The average balance for total deposits increased from $1.69 billion for the six months ended June 30, 2025, to $1.78 billion for the six months ended June 30, 2026. However, the overall average rate on total deposits was down from 1.64% for the six months ended June 30, 2025, compared to 1.51% for the six months ended June 30, 2026.

Current wording

*Interest Expense.*Total interest expense was $23.00 million for the nine months ended September 30, 2026, decreasing from $27.32 million for the nine months ended September 30, 2025. The decrease of $4.32 million, or 15.8%, was due in part to a decrease of $3.16 million in interest expense on total borrowings. In addition, interest expense on deposits decreased by $1.16 million, period over period. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $180.35 million for the nine months ended September 30, 2025, to $97.73 million for the nine months ended September 30, 2026. The average rate paid also decreased from 4.74% for the nine months ended September 30, 2025, to 4.42% for the nine months ended September 30, 2026. The overall average rate on total deposits was down from 1.64% for the nine months ended September 30, 2025, compared to 1.48% for the nine months ended September 30, 2026. However, the average balance for total deposits increased from $1.71 billon for the nine months ended September 30, 2025, to $1.78 billion for the nine months ended September 30, 2026.

Previous wording

*Provision for Credit Losses. *Provision for credit losses was $622,000 for the six months ended June 30, 2026, compared to $1.08 million for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026, included the provision for credit losses on loans of $512,000 and the provision for unfunded commitments of $110,000. The higher provision for 2025 was largely due to loan growth.

Current wording

*Provision for Credit Losses.*Provision for credit losses was $2.48 million for the nine months ended September 30, 2026, compared to $1.14 million for the nine months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026, included the provision for credit losses on loans of $2.39 million and the provision for unfunded commitments of $90,000. The higher provision for 2026 was driven by loan growth and does not reflect any meaningful borrower specific deterioration.

Previous wording

*Noninterest Income. *Total noninterest income was $9.90 million for the six months ended June 30, 2026, compared to $8.82 million for the six months ended June 30, 2025, an increase of $1.08 million, or 12.2%. This increase was largely due to an increase of $625,000 in other noninterest income for insurance proceeds of $488,000 received for the six months ended June 30, 2026, primarily related to smoke damage caused by a furnace fire and other damage from a windstorm. In addition, mortgage banking, net increased $303,000 to $5.35 million for the six months ended June 30, 2026, from $5.05 million for the six months ended June 30, 2025. Mortgage banking, net, includes net gain on sale of mortgage loans, which increased to $3.90 million for the six months ended June 30, 2026, compared to $3.43 million for the six months ended June 30, 2025. During the six months ended June 30, 2026, $138.59 million residential mortgage loans were sold, compared to $97.40 million in the six months ended June 30, 2025. However, gross margin levels decreased from 3.52% for the six months ended June 30, 2025, to 2.82% for the six months ended June 30, 2026.

Current wording

*Noninterest Income.*Total noninterest income was $15.00 million for the nine months ended September 30, 2026, compared to $13.54 million for the nine months ended September 30, 2025, an increase of $1.46 million, or 10.7%. This increase was largely due to an increase of $964,000 in other noninterest income. Other noninterest income includes insurance proceeds of $581,000 received for the nine months ended September 30, 2026, primarily related to smoke damage caused by a furnace fire and other windstorm damage. In addition, mortgage banking, net increased $280,000 to $8.26 million for the nine months ended September 30, 2026, from $7.98 million for the nine months ended September 30, 2025. Mortgage banking, net, includes net gain on sale of mortgage loans, which increased to $5.92 million for the nine months ended September 30, 2026, compared to $5.66 million for the nine months ended September 30, 2025. During the nine months ended September 30, 2026, $213.33 million residential mortgage loans were sold, compared to $165.65 million in the nine months ended September 30, 2025. However, gross margin levels decreased from 3.42% for the nine months ended September 30, 2025, to 2.78% for the nine months ended September 30, 2026 due to a competitive mortgage market.

Previous wording

*Noninterest Expense.*Noninterest expense was $37.20 million for the six months ended June 30, 2026, compared to $34.93 million for the six months ended June 30, 2025, an increase of $2.27 million, or 6.5%. The driver of the increase was salaries and employee benefits, which increased $2.22 million. The largest components of the increase period over period were health insurance expense, which increased $777,000, and commission expense, which increased $545,000 due to higher mortgage origination volumes.

Current wording

*Noninterest Expense.*Noninterest expense was $56.58 million for the nine months ended September 30, 2026, compared to $53.32 million for the nine months ended September 30, 2025, an increase of $3.26 million, or 6.1%. The driver of the increase was salaries and employee benefits, which increased $2.87 million. The largest components of this increase period over period were health insurance expense, which increased $1.32 million, and commission expense, which increased $632,000 due to higher mortgage origination volumes.

Previous wording

*Provision for Income Taxes. *Provision for income taxes was $2.22 million for the six months ended June 30, 2026, compared to $1.38 million for the six months ended June 30, 2025. The effective tax rate was 22.3% for the current period compared to 17.6% for the six months ended June 30, 2025. The effective tax rate has increased as the Company’s pretax earnings increased at a faster pace than tax-exempt income.

Current wording

*Provision for Income Taxes.*Provision for income taxes was $3.05 million for the nine months ended September 30, 2026, compared to $2.71 million for the nine months ended September 30, 2025. The effective tax rate was 22.1% for the current period compared to 21.1% for the nine months ended September 30, 2025.

Previous wording

The Company's available borrowing capacity was approximately $575.00 million as of June 30, 2026 and $601.00 million as of December 31, 2025.

Current wording

The Company's available borrowing capacity was approximately $452.00 million as of September 30, 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 June 30, 2026, the Bank had no brokered certificates and $6,000 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. Internal 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, 2026, the Bank had no brokered certificates and no brokered money market deposits. As of December 31, 2025, the Bank had no brokered certificates and $3.21 million in brokered money market deposits. Internal policy limits for brokered deposits are set at 10% of assets.

Previous wording

Eagle has a $15.00 million line of credit with a correspondent bank. The line of credit was utilized during 2025 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 outstanding balance for the line of credit was $13.00 million and $15.00 million at June 30, 2026 and December 31, 2025, respectively. The rate was 6.25% as of both June 30, 2026 and December 31, 2025. Draws on the line of credit are 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.

Current wording

Eagle renewed its line of credit and increased the amount from $15.00 million to $25.00 million on September 30, 2026. The line of credit was utilized during 2025 to finance the redemption payment for subordinated notes of $15.00 million. The variable interest rate was modified from 0.50% below prime to 0.88% below prime upon renewal. The line of credit has a two-year maturity. The outstanding balance for the line of credit was $13.00 million and $15.00 million at September 30, 2026 and December 31, 2025, respectively. The rate was 6.13%and 6.25% as of September 30, 2026 and December 31, 2025, respectively. Draws on the line of credit are secured by the assets of the Company, including capital stock of the Bank, 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 June 30, 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 2.7%, compared to an increase of 3.4% at December 31, 2025. A 200-basis point decrease in interest rates scenario decreased EVE by 8.8%, 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.

Current wording

As of September 30, 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 0.1%, compared to an increase of 3.4% at December 31, 2025. A 200-basis point decrease in interest rates scenario decreased EVE by 5.4%, 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.