Business Operations - Eagle Bancorp Montana, Inc. operates 30 full-service branches and 32 ATMs across Montana, focusing on small businesses and individuals [20]. - The Bank aims to enhance market share through organic growth and opportunistic acquisitions, with a focus on maintaining strong asset quality [23][28]. - The Bank's strategy includes diversifying its portfolio by emphasizing growth in commercial real estate and agricultural loans while maintaining disciplined credit underwriting standards [27]. - The company emphasizes the origination of consumer, commercial real estate, and commercial business loans, which increases credit risk and may necessitate additional provisions for credit losses [134]. - The company plans to pursue organic growth and evaluate potential acquisitions, but there are risks associated with managing this growth effectively [149]. Loan Portfolio - As of December 31, 2024, commercial real estate and commercial business loans constituted approximately 78.60% of total loans [28]. - At December 31, 2024, the Bank's balance of residential 1-4 family mortgage loans was $153.72 million, representing 10.11% of total loans [37]. - Commercial real estate loans accounted for 42.48% of the Bank's total loan portfolio, amounting to $645.96 million at December 31, 2024 [41]. - Home equity loans totaled $97.54 million, or 6.41% of total loans, as of December 31, 2024 [44]. - Commercial construction and development loans accounted for $124.21 million, or 8.17% of the Bank's total loan portfolio at December 31, 2024 [42]. - As of December 31, 2024, consumer loans totaled $28.51 million, representing 1.88% of the Bank's total loan portfolio [46]. - Commercial business loans amounted to $144.04 million, or 9.47% of the Bank's total loan portfolio as of December 31, 2024 [49]. - Agricultural production loans totaled $134.35 million, accounting for 8.83% of the Bank's total loan portfolio as of December 31, 2024 [49]. - Approximately 18.48% of the total gross loan portfolio, equating to $280.96 million, was comprised of farmland and agricultural production loans as of December 31, 2024 [163]. - As of December 31, 2024, the total loan portfolio includes 60.3% in commercial real estate loans, with farmland loans making up 9.6% and commercial business loans at 18.3%, including agricultural loans at 8.8% [203]. Financial Performance - The total consideration for the acquisition of First Community Bancorp, Inc. in April 2022 was $38.58 million, including $10.23 million in cash and $28.35 million in common stock [24]. - The Bank's mortgage loan servicing fees were $5.11 million for the year ended December 31, 2024, compared to $5.09 million in 2023 [36]. - The company recorded goodwill of $34.74 million as of December 31, 2024, and is required to test for impairment periodically [129]. - The company sold $211.78 million in mortgage loans during 2024, relying on secondary market purchasers for liquidity [145]. - The company’s earnings are primarily driven by net interest income, which is influenced by the interest rate spread and the balance of interest-earning assets [202]. - The company’s strategy focuses on increasing net interest margin and fee income while controlling operating expenses to achieve earnings growth [205]. Regulatory Compliance - The Bank is classified as "well-capitalized" under the prompt corrective action framework as of December 31, 2024 [100]. - Federal regulations require a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, and a total capital to risk-based assets of 8.0% [94]. - The company is subject to regulations under the Bank Holding Company Act and must notify the FRB for any acquisition of 10.0% or more of Eagle's voting stock [107]. - The company’s ability to pay dividends is subject to regulatory requirements and depends on the level of earnings at the bank [147]. - The company faces risks related to noncompliance with the Bank Secrecy Act and other anti-money laundering regulations, which could lead to significant penalties and reputational damage [166]. Economic and Market Conditions - Economic conditions, particularly in Montana, significantly impact the company's financial performance, with potential adverse effects from rising interest rates and inflation [110]. - The Federal Open Market Committee raised the federal funds rate four times in 2023, with potential interest rate reductions forecasted for 2024, but persistent inflation may delay this [113]. - The company faces heightened credit risk due to economic and geopolitical factors, particularly affecting real estate loans and collateral values [115]. - Declines in home values could lead to decreased loan originations and increased delinquencies, adversely impacting financial results [116]. - Changes in interest rates significantly affect net interest income, which is crucial for the company's financial health [117]. - The transition from LIBOR to SOFR as a benchmark rate may introduce uncertainty and risks related to financial instruments [120]. - Intense competition in the banking sector may limit the company's growth and profitability, as larger institutions may offer more resources and services [122]. Asset Management - The investment policy allows for investments in high credit quality instruments while maximizing total return within interest rate risk and liquidity management guidelines [60]. - The Bank maintains liquid assets that may be invested in specified short-term securities and other investments, with liquidity levels adjusted based on management's judgment [59]. - The aggregate cost of the company's investment in the Federal Home Loan Bank of Des Moines common stock was $7.78 million as of December 31, 2024 [169]. - The allowance for credit losses is a critical accounting policy, reflecting management's estimate of expected losses in the loan portfolio [210]. - Total assets increased by $27.42 million, or 1.3%, to $2.10 billion as of December 31, 2024, compared to $2.08 billion as of December 31, 2023 [215]. Cybersecurity and Internal Controls - The company faces risks associated with system failures and security breaches, which could adversely affect earnings and customer trust [130]. - The company is committed to maintaining a strong internal control environment and is taking actions to remediate the identified material weakness [157]. - The company has established comprehensive incident response and recovery plans for cybersecurity threats, which are regularly tested and evaluated [180]. - The Board of Directors has ultimate oversight of cybersecurity risk, receiving regular reports on various cybersecurity efforts and incidents [182]. - The company engages third-party consultants annually to assess and manage cybersecurity threats, ensuring robust security measures are in place [184]. Shareholder Information - The company has 372 full-time employees and 10 part-time employees as of December 31, 2024 [74]. - Nearly all employees are shareholders of the Company through participation in the Employee Stock Ownership Plan (ESOP) [75]. - The company repurchased 25,000 shares of common stock at an average price of $16.74 during December 2024, with a total of 50,000 shares repurchased in January 2025 at an average price of $15.11 [196]. - The company’s common stock closed at $15.33 per share on December 31, 2024, with 8,507,429 shares outstanding held by approximately 939 shareholders [192].

Company Overview - Eagle Bancorp Montana, Inc. (EBMT) is headquartered in Helena and has experienced a price change of 5.35% this year [3] - The company currently pays a dividend of $0.14 per share, resulting in a dividend yield of 3.53%, which is higher than the Banks - Midwest industry's yield of 2.9% and the S&P 500's yield of 1.54% [3] Dividend Performance - The current annualized dividend of $0.57 represents a 0.9% increase from the previous year [4] - Over the past five years, EBMT has increased its dividend five times, achieving an average annual increase of 10.60% [4] - The company's current payout ratio is 46%, indicating that it pays out 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, EBMT anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.61 per share, reflecting a 29.84% increase from the previous year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - High-growth firms or tech start-ups typically do not provide dividends, while established companies with secure profits are preferred for dividend investments [7] - EBMT is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Here are three stocks with buy rank and strong income characteristics for investors to consider today, February 5th:RITHM CAP CP (RITM) : This company which is a provider of capital and services to the real estate and financial services industries, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.This Zacks Rank #1 (Strong Buy) company has a dividend yield of 8.8%, compared with the industry average of 0.0%.Horizon Bancorp IN (HBNC) : This bank h ...

Eagle Bancorp Montana, Inc. (EBMT) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 46.67%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.34, delivering a surprise of 13.33%.Over the last four quarters, ...

Fourth Quarter 2024 Highlights (at or for the three-month period ended December 31, 2024, except where noted): | | December 31, 2024 | | | | December 31, 2023 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Dollars in | | | Remaining | Borrowing | Remaining | | | Borrowing | | thousands) | Borrowings | Outstanding | | Capacity | Borrowings | Outstanding | | Capacity | | Federal Home | | | | | | | | | | Loan Bank | | | | | | | | | | advances | $ $ | 140,930 | | 276,664 | $ | 175,737 | $ | ...

HELENA, Mont., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and $2.2 million, or $0.28 per diluted share, in the fourth quarter of 2023. For the year ended December 31, 2024, net income was $9.8 million, or ...

Financial Performance - Net interest income after provision for credit losses was $15,525 thousand for the three months ended September 30, 2024, up from $14,999 thousand for the same period in 2023, representing an increase of about 3.5%[16] - Net income for the three months ended September 30, 2024, was $2,709,000, compared to $2,635,000 for the same period in 2023, representing an increase of 2.8%[18] - For the nine months ended September 30, 2024, net income was $6,345,000, down from $7,892,000 in 2023, a decrease of 19.6%[19] - Basic earnings per share for the three months ended September 30, 2024, was $0.35, compared to $0.34 in 2023, reflecting a 2.9% increase[18] - Comprehensive income for the three months ended September 30, 2024, was $8,490,000, compared to a loss of $4,557,000 in 2023[19] Asset and Liability Management - Total assets increased to $2,145,113 thousand as of September 30, 2024, compared to $2,075,666 thousand at December 31, 2023, reflecting a growth of approximately 3.35%[9] - Total deposits reached $1,650,512 thousand as of September 30, 2024, a slight increase from $1,635,195 thousand at December 31, 2023, indicating a growth of about 0.94%[12] - Total liabilities increased to $1,951,677 thousand, with interest-bearing liabilities averaging $1,502,844 thousand and a cost of 2.89%[133] - The Bank's total shareholders' equity increased by $8.46 million, or 5.0%, to $178.00 million as of September 30, 2024[114] Income and Expense Analysis - Total interest and dividend income rose to $26,760 thousand for the three months ended September 30, 2024, compared to $24,094 thousand in the prior year, marking an increase of approximately 11%[16] - Interest expense increased to $10,958 thousand for the three months ended September 30, 2024, compared to $8,507 thousand in the prior year, representing an increase of approximately 29%[16] - Total noninterest expense for the three months ended September 30, 2024, was $17,270,000, a decrease of 3.4% from $17,875,000 in 2023[18] - Noninterest income decreased to $4,983 thousand for the three months ended September 30, 2024, down from $6,035 thousand in the same period of 2023, reflecting a decline of approximately 17.4%[16] Credit Quality and Losses - Provision for credit losses was $277 thousand for the three months ended September 30, 2024, down from $588 thousand in the same period of 2023, indicating a decrease of about 53%[16] - The allowance for credit losses was $17,130 thousand as of September 30, 2024, compared to $16,440 thousand at December 31, 2023, indicating a rise of about 4.2%[9] - The company reported a decrease in salaries and employee benefits to $9,894,000 for the three months ended September 30, 2024, down from $10,837,000 in 2023, a reduction of 8.7%[18] - The total charge-offs for the nine months ended September 30, 2023, were $178 million, indicating a higher level of credit losses compared to the current year[55] Investment and Securities - The fair value of total investment securities was $306,982,000 as of September 30, 2024, down from $345,355,000 as of December 31, 2023, indicating a decrease of approximately 11.0%[43] - The total unrealized losses on investment securities amounted to $20,936,000 as of September 30, 2024, compared to $27,689,000 as of December 31, 2023, reflecting an improvement of approximately 24.0%[43] - The company reported a net realized loss on the sale of available-for-sale securities of $222,000 for the nine months ended September 30, 2024[44] Loan Portfolio - As of September 30, 2024, total loans receivable amounted to $1,534,652,000, an increase from $1,484,489,000 as of December 31, 2023, representing a growth of approximately 3.4%[49] - Total loans reached $1,534,652 million, with a pass rate of $1,517,098 million, representing approximately 98.9%[59] - The total agricultural loans amounted to $144,645 million, with a pass rate of $141,423 million, indicating a strong performance in this sector[59] - The total commercial loans reached $143,190 million, with a pass rate of $142,942 million, reflecting stability in commercial lending[58] Market and Strategic Initiatives - The company is focusing on market expansion and new product development to enhance growth opportunities in the future[58] - The company has reviewed all LIBOR-based products and adjusted them to another index as LIBOR ceased publication after June 30, 2023[40] - The company is currently evaluating the impact of ASU No. 2023-09 on its financial statement disclosures, which requires enhanced income tax disclosures effective after December 15, 2024[42] Regulatory and Compliance - The FASB issued ASU No. 2023-07, effective for fiscal years beginning after December 15, 2023, requiring expanded reportable segment disclosures[41] - The company has established that projected net interest income will not be reduced by more than 15% over the next twelve months given an immediate increase or decrease in interest rates of up to 300 basis points[169] - A quantitative goodwill impairment test was performed, concluding that goodwill was not impaired as of August 31, 2024[174]

Eagle Bancorp Montana, Inc. (EBMT) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.33%. A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.22, delivering a surprise of -21.43%. Over the last four quarter ...

Financial Performance - Net income for Q3 2024 was $2.7 million, or $0.34 per diluted share, compared to $1.7 million, or $0.22 per diluted share in Q2 2024, and $2.6 million, or $0.34 per diluted share in Q3 2023[1] - Net income for the quarter was $2,709,000, compared to $1,738,000 in the previous quarter, representing a 55.9% increase[30] - Basic earnings per common share increased to $0.35 from $0.22, reflecting a 59.1% growth[31] - Return on average assets improved to 0.51% from 0.33%, indicating a 54.5% increase[32] - Mortgage banking net income for the quarter was $2,602,000, up from $2,417,000, a rise of 7.6%[32] Loans and Deposits - Total loans increased by 4.0% year-over-year to $1.53 billion, with a 1.1% increase from the previous quarter[3] - Total deposits rose by $35.0 million, or 2.2%, to $1.65 billion compared to a year earlier, and increased by $31.6 million, or 2.0%, from the previous quarter[3] - The company reported a net loan figure of $1,517,522 thousand as of September 30, 2024, compared to $1,459,543 thousand a year earlier, indicating an increase of approximately 3.95%[28] - Average loans for the quarter were $1,874,669,000, compared to $1,837,418,000 in the previous quarter, an increase of 2.0%[35] Assets and Equity - As of September 30, 2024, total assets increased to $2,145,113 thousand from $2,063,064 thousand a year earlier, representing a growth of approximately 3.97%[27] - Shareholders' equity increased to $177.7 million at September 30, 2024, compared to $157.3 million a year earlier[11] - The company's total shareholders' equity increased to $177,730 thousand as of September 30, 2024, from $157,270 thousand a year prior, representing a growth of approximately 12.96%[28] - Tangible common shareholders' equity to tangible assets increased to 6.56% from 6.33% year-over-year[36] Income and Margins - Net interest margin (NIM) was 3.34% in Q3 2024, a seven basis point decrease from 3.41% in Q2 2024 and Q3 2023[3] - Net interest income for the three months ended September 30, 2024, was $15,802, up from $15,632 in the previous quarter[36] - Noninterest income increased by 16.7% to $5.0 million in Q3 2024 compared to $4.3 million in the preceding quarter, but decreased by 17.4% compared to $6.0 million in Q3 2023[16] - Noninterest income increased to $4,983 from $4,269 quarter-over-quarter[36] Credit Quality - The allowance for credit losses was 1.12% of total loans at September 30, 2024, compared to 1.10% a year earlier[20] - The allowance for credit losses stood at $17,130 thousand as of September 30, 2024, compared to $16,230 thousand a year prior, reflecting an increase of approximately 5.55%[27] - Nonperforming loans decreased to $4,803,000 from $5,088,000, a reduction of 5.6%[34] - Total nonperforming assets decreased to $4,807,000 from $5,092,000, a decline of 5.6%[34] Efficiency Ratios - The core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense, providing insights into operational performance[25] - Core efficiency ratio improved to 81.47% from 85.22%, showing enhanced operational efficiency[32] - Core efficiency ratio (non-GAAP) improved to 81.47% compared to 85.22% in the previous quarter and 80.89% a year ago[36]

Core Viewpoint - Eagle Bancorp Montana (EBMT) is highlighted as a strong investment opportunity due to its increasing earnings estimates and attractive dividend yield [1] Company Summary - Eagle Bancorp Montana is a bank holding company that provides retail banking services in the south-central region of Montana [1] - The Zacks Consensus Estimate for Eagle Bancorp Montana's current year earnings has increased by 0.9% over the last 60 days [1] - The company holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [1] - Eagle Bancorp Montana offers a dividend yield of 3.6%, which is higher than the industry average of 3% [1]