Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of registrant as specified in its charter) Delaware 27-1449820 State or other jurisdictio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of small business issuer as specified in its charter) Delaware ...

Financial Performance - Net interest income for the three months ended June 30, 2022, was $15,967 thousand, compared to $11,325 thousand for the same period in 2021, reflecting an increase of 41.5%[24] - Net income for the three months ended June 30, 2022, was $1,771 thousand, down from $2,681 thousand in the same period of 2021, a decrease of 33.9%[26] - Basic earnings per share for the three months ended June 30, 2022, were $0.24, compared to $0.40 for the same period in 2021, a decline of 40%[26] - Comprehensive loss income for the six months ended June 30, 2022, was $(18,587,000), compared to $7,033,000 for the same period in 2021[28] - Net income for June 2022 was $3,987,000, a decrease of 50.2% compared to $7,946,000 in 2021[38] - Net income for the six months ended June 30, 2022, was $3.99 million, a decrease of $3.96 million compared to $7.95 million for the same period in 2021, largely due to a $9.06 million decrease in noninterest income[185] Asset and Liability Growth - Total assets increased to $1,900,472 thousand as of June 30, 2022, up from $1,435,926 thousand at December 31, 2021, representing a growth of approximately 32.3%[15] - Total deposits rose to $1,651,833 thousand as of June 30, 2022, compared to $1,222,549 thousand at December 31, 2021, marking an increase of 35.2%[19] - Total liabilities reached $1.74 billion at June 30, 2022, an increase of $458.48 million or 35.8% from $1.28 billion at December 31, 2021[149] - Total assets increased to $1.90 billion at June 30, 2022, up $464.54 million or 32.4% from $1.44 billion at December 31, 2021[149] Loan and Deposit Details - Total loans, net, reached $1,237,627,000 as of June 30, 2022, up from $920,639,000 at December 31, 2021, reflecting a growth of approximately 34.4%[77] - The allowance for loan losses increased to $13,325,000 as of June 30, 2022, compared to $12,500,000 at December 31, 2021[77] - The company reported $62,445,000 in home equity loans and $25,775,000 in consumer loans as of June 30, 2022, showing increases from $51,748,000 and $18,455,000 respectively at December 31, 2021[77] - Total deposits increased by $429.28 million, or 35.1%, to $1.65 billion at June 30, 2022, from $1.22 billion at December 31, 2021[161] Noninterest Income and Expenses - Noninterest income decreased to $7,342 thousand for the three months ended June 30, 2022, down from $11,308 thousand in the same period of 2021, a decline of 35.1%[26] - The company reported total noninterest expense of $20,046 thousand for the three months ended June 30, 2022, compared to $19,037 thousand in the same period of 2021, an increase of 5.3%[26] - Total noninterest income decreased to $7.34 million for the three months ended June 30, 2022, down from $11.31 million in the same period of 2021, primarily due to a $4.44 million decrease in mortgage banking[180] Acquisition and Goodwill - The company completed the acquisition of First Community Bancorp on April 30, 2022, for a total consideration of $38.58 million, including $10.23 million in cash and $28.35 million in common stock[141] - Goodwill increased to $34,740 thousand as of June 30, 2022, from $20,798 thousand at December 31, 2021, reflecting a growth of 67%[19] - Goodwill recorded from the FCB acquisition was provisionally $13,942,000, which is not deductible for federal income tax purposes[60] Capital and Equity - Total shareholders' equity increased by $6.06 million, or 3.9%, to $162.79 million at June 30, 2022, primarily due to stock issued in connection with the FCB acquisition[163] - The company has subordinated debentures with fixed interest rates of 5.50% and 3.50%, due in 2030 and 2032, respectively, qualifying as Tier 2 capital[99][98] Interest Rate and Risk Management - The interest rate spread for the three months ended June 30, 2022, was 3.98%[167] - Interest rate risk management aims to maintain or increase net interest income within acceptable levels of interest rate risk[206] - Projected net interest income sensitivity shows a -16.3% impact for a -200 basis points change in year two, slightly outside the policy limit of -15.0%[207] Securities and Investments - The total fair value of mortgage-backed securities and collateralized mortgage obligations was $101,532,000 with gross unrealized losses of $5,965,000 as of June 30, 2022[75] - The total unrealized losses for the company's investment securities amounted to $25,208,000 as of June 30, 2022, with a total fair value of $320,597,000[75] - The fair value of mortgage servicing rights was $18,398,000 as of June 30, 2022, compared to $14,686,000 at December 31, 2021[95] Tax and Regulatory Compliance - Provision for income taxes decreased to $1.33 million for the six months ended June 30, 2022, down from $2.65 million in the same period in 2021, due to decreased income[192] - The effective tax rate for the three months ended June 30, 2022, was 26.4%, compared to 25.0% for the same period in 2021[183]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of small business issuer as specified in its charter) 27-1449820 De ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of small business issuer as specified in its charter) 27-144982 ...

Financial Performance - The company reported a net income of $80,607 thousand for the six months ended June 30, 2021, compared to $73,982 thousand for the same period in 2020, reflecting an increase of about 9.0%[18]. - Net income for the three months ended June 30, 2021, was $2,681, a decrease of 53.3% from $5,735 in the same period of 2020[24]. - Net income for June 2021 was $7,946,000, a decrease from $9,662,000 in June 2020, representing a decline of approximately 17.7%[34]. - Net income for the six months ended June 30, 2021 was $7.95 million, a decrease of $1.71 million from $9.66 million in the same period of 2020[186]. - The company recorded net losses of $1.043 million for the three months ended June 30, 2021, compared to net gains of $2.155 million for the same period in 2020[100]. - The company reported net losses of $2.326 million for the six months ended June 30, 2021, compared to net gains of $3.402 million for the same period in 2020[100]. Assets and Liabilities - As of June 30, 2021, total assets increased to $1,359,355 thousand from $1,257,634 thousand as of December 31, 2020, representing a growth of approximately 8.1%[18]. - Total liabilities amounted to $1,180,240 thousand, up from $1,077,183 thousand year-over-year[169]. - The total estimated fair value of loans receivable was $880,484,000 as of June 30, 2021, with a carrying amount of $873,930,000[121]. - The total amount of real estate owned and other repossessed property was $6,000 as of June 30, 2021, down from $25,000 at December 31, 2020[156]. Deposits - Total deposits rose to $1,145,602 thousand, up from $1,033,083 thousand, indicating an increase of about 10.8%[18]. - Net increase in deposits for the six months ended June 30, 2021, was $112,519,000, compared to $59,879,000 for the same period in 2020, representing an increase of 87.8%[37]. - Total deposits rose by $112.52 million, or 10.9%, to $1.15 billion at June 30, 2021, from $1.03 billion at December 31, 2020[163]. Loans - Total loans, net as of June 30, 2021, amounted to $862,030,000, an increase from $829,503,000 as of December 31, 2020, reflecting a growth of approximately 3.0%[71]. - Total loans increased by $32.53 million, or 3.9%, to $862.03 million as of June 30, 2021, compared to $829.50 million at December 31, 2020[153]. - The total amount of charge-offs for the period included $33,000, while recoveries amounted to $11,000, resulting in a net charge-off of $22,000[74]. - The company reported a total of 3,734 nonaccrual loans, with 1,509 loans past due between 30-89 days and 2,225 loans past due for 90 days or more[77]. Income and Expenses - Total interest and dividend income for the three months ended June 30, 2021, was $12,125, a slight decrease from $12,133 in the same period of 2020[21]. - Total noninterest income totaled $11,308 for the three months ended June 30, 2021, down from $13,698 in the same period of 2020, representing a decrease of 17.4%[24]. - Total noninterest expense increased to $19,037 for the three months ended June 30, 2021, compared to $15,133 in the same period of 2020, marking a rise of 25.5%[24]. - Noninterest expense increased by $8.27 million or 29.6% to $36.25 million, primarily due to higher salaries and employee benefits expenses[192]. Capital and Equity - Shareholders' equity slightly decreased to $152,744 thousand from $152,938 thousand, a decline of approximately 0.1%[18]. - The company is committed to maintaining a strong capital position to support its growth strategy and manage potential risks associated with market volatility[12]. - The Bank's Tier I leverage ratio decreased slightly to 11.40% as of June 30, 2021, compared to 11.72% at December 31, 2020, remaining well above the regulatory requirement of 4.00%[200]. Market and Economic Conditions - Management anticipates continued challenges due to the ongoing COVID-19 pandemic, which may impact credit quality and overall economic conditions[13]. - Future performance may be influenced by changes in regulatory requirements and economic conditions affecting the financial services industry[13]. - The company has implemented various borrower accommodations due to COVID-19, including 90-day deferrals and interest-only payments, which are not classified as TDRs under the CARES Act[84]. Strategic Initiatives - The company has identified potential growth opportunities in new markets and is focused on strategic acquisitions to enhance its operational capabilities[12]. - The company is focused on expanding its market presence through its wholly owned subsidiary, Opportunity Bank of Montana, which engages in consumer and commercial lending[129]. - The Bank's management aims to increase net interest margin and fee income while controlling operating expenses to drive earnings growth[131].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. | --- | --- | |---------------------------------------------------------------- ...

Part I [Item 1. Description of Business](index=6&type=section&id=ITEM%201%2E%20DESCRIPTION%20OF%20BUSINESS%2E) Eagle Bancorp Montana, Inc. is a bank holding company for Opportunity Bank of Montana, offering diversified lending services to small businesses and individuals in Montana, with 2020 operations impacted by COVID-19 and subject to extensive regulation [Overview and Recent Events](index=6&type=section&id=Overview%20and%20Recent%20Events) Eagle Bancorp Montana, Inc., holding company for Opportunity Bank of Montana, operates 23 branches, focusing on diversified loans, with 2020 operations impacted by COVID-19 and supported by strategic acquisitions - **Eagle Bancorp Montana, Inc.** is the holding company for Opportunity Bank of Montana, a Montana-chartered commercial bank with **23 full-service branches**[16](index=16&type=chunk) - The company's operations in 2020 were substantially influenced by the **COVID-19 pandemic**, leading to the closure of branch lobbies and a shift to drive-through and appointment-based services[19](index=19&type=chunk)[20](index=20&type=chunk) - In January 2020, the Company acquired Western Holding Company of Wolf Point (WHC) and its subsidiary, Western Bank of Wolf Point, for a total consideration of **$14.97 million**[24](index=24&type=chunk) [Business Strategy, Market Areas, and Competition](index=7&type=section&id=Business%20Strategy%2C%20Market%20Areas%2C%20and%20Competition) The company's strategy emphasizes operating as a full-service community bank, diversifying its loan portfolio with a focus on commercial real estate and business loans, while attracting low-cost deposits and pursuing acquisitions in Montana's competitive banking market - The company's business strategy emphasizes diversifying its loan portfolio, with a focus on growing commercial real estate and commercial business loans, which comprised approximately **72.27% of total loans** as of December 31, 2020[26](index=26&type=chunk) - The bank conducts business through its headquarters and **22 other branches** across Montana, serving a state with a population of approximately **1.07 million**[28](index=28&type=chunk)[29](index=29&type=chunk) Deposit Market Share by County (as of June 30, 2020) | County | Deposit Market Share | Rank | | :--- | :--- | :--- | | Broadwater, MT | 100.00% | 1 | | Madison, MT | 40.59% | 2 | | Roosevelt, MT | 33.17% | 2 | | Sweet Grass, MT | 29.61% | 2 | | Teton, MT | 17.27% | 2 | - The company faces intense competition from **39 commercial banks** and **46 credit unions** in Montana as of December 31, 2020[31](index=31&type=chunk)[32](index=32&type=chunk) [Lending and Investment Activities](index=9&type=section&id=Lending%20and%20Investment%20Activities) The bank's lending activities are diversified across various loan categories, with commercial real estate being the largest, while investment policy focuses on high-credit-quality instruments to manage earnings and liquidity Loan Portfolio Composition (as of Dec 31, 2020) | Loan Category | Amount (Millions USD) | % of Total Loans | | :--- | :--- | :--- | | Commercial Real Estate | $316.67 | 37.56% | | Commercial Business | $109.21 | 12.95% | | Residential 1-4 Family | $110.80 | 13.14% | | Farmland | $65.92 | 7.82% | | Commercial Construction | $65.28 | 7.74% | | Home Equity | $56.56 | 6.71% | | Agricultural Production | $52.24 | 6.20% | | Residential Construction | $46.29 | 5.49% | | Consumer | $20.17 | 2.39% | - The bank derives significant fee income from originating and servicing sold mortgage loans, with fees net of amortization of mortgage servicing rights increasing to **$5.66 million** in 2020 from **$2.32 million** in 2019[35](index=35&type=chunk) - As of December 31, 2020, the bank serviced **$1.47 billion** in residential 1-4 family mortgage loans sold with servicing retained[37](index=37&type=chunk) - The bank's investment policy permits investments in high credit quality instruments like U.S. government obligations, municipal securities, and mortgage-backed securities, but prohibits high-risk mortgage derivatives without prior Board approval[60](index=60&type=chunk)[61](index=61&type=chunk) [Sources of Funds and Human Capital](index=12&type=section&id=Sources%20of%20Funds%20and%20Human%20Capital) Deposits are the company's primary source of funds, supplemented by borrowings and subordinated notes, while human capital strategy focuses on employee retention through competitive benefits and professional development - The company's primary source of funds is deposits, supplemented by borrowings from the FHLB of Des Moines and other credit lines[64](index=64&type=chunk)[70](index=70&type=chunk) - In June 2020, the company issued **$15.00 million** in subordinated notes due 2030 with a fixed rate of **5.50%** until July 2025, after which it becomes a floating rate based on SOFR[71](index=71&type=chunk) - As of December 31, 2020, the company had **335 full-time** and **19 part-time employees**, who are not represented by a collective bargaining unit[74](index=74&type=chunk) - The company promotes employee retention through competitive benefits and an Employee Stock Ownership Plan (ESOP), in which nearly all employees participate[75](index=75&type=chunk) [Regulation](index=15&type=section&id=Regulation) The company and its bank subsidiary are extensively regulated by federal and state authorities, adhering to strict capital requirements and other banking laws, and were considered "well capitalized" as of December 31, 2020 - The Bank is regulated and supervised by the Federal Reserve Bank of Minneapolis (FRB) and the Montana Division of Banking and Financial Institutions, with deposits insured by the FDIC[82](index=82&type=chunk) - The Dodd-Frank Act and the Economic Growth, Regulatory Relief and Consumer Protection Act have significantly influenced the bank's regulatory structure, compliance costs, and operating activities[83](index=83&type=chunk)[84](index=84&type=chunk) Minimum Capital Requirements (Fully Phased-In Basel III) | Ratio | Minimum Requirement | | :--- | :--- | | Common Equity Tier 1 to RWA | 7.0% | | Tier 1 Capital to RWA | 8.5% | | Total Capital to RWA | 10.5% | | Tier 1 Leverage Ratio | 4.0% | - To be considered "well capitalized" under prompt corrective action rules, an institution must meet higher thresholds, including a total capital ratio of **10.0%** and a Tier 1 leverage ratio of **5.0%**, which the Bank met as of December 31, 2020[104](index=104&type=chunk)[105](index=105&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=ITEM%201A%2E%20RISK%20FACTORS) The company faces significant risks related to economic conditions, business operations, and the regulatory environment, including the ongoing impact of the COVID-19 pandemic, potential goodwill impairment, cybersecurity threats, and credit risk from commercial real estate lending - The **COVID-19 pandemic** is a primary risk factor, adversely affecting customers and the economy, which could lead to increased credit losses, impairment of goodwill, and reduced demand for products and services[117](index=117&type=chunk)[118](index=118&type=chunk)[125](index=125&type=chunk) - The company's concentration in Montana makes it highly dependent on local economic conditions, which could be adversely affected by declines in home values, changes in interest rates, and intense competition[131](index=131&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Business risks include potential impairment of goodwill from acquisitions, system failures or cybersecurity breaches, and an allowance for loan losses that may be insufficient to cover actual losses[143](index=143&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk) - The increased emphasis on commercial real estate and business loans elevates credit risk, as repayment is dependent on the successful operation of the borrower's business[157](index=157&type=chunk)[158](index=158&type=chunk) - A significant portion of noninterest income is derived from selling residential mortgages in the secondary market, creating reliance on purchasers like FNMA and FHLMC and exposing the company to market and regulatory changes[162](index=162&type=chunk)[163](index=163&type=chunk) [Item 1B. Unresolved Staff Comments](index=29&type=section&id=ITEM%201B%2E%20UNRESOLVED%20STAFF%20COMMENTS%2E) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[186](index=186&type=chunk) [Item 2. Properties](index=31&type=section&id=ITEM%202%2E%20PROPERTIES%2E) As of December 31, 2020, the company conducted business through 26 locations, including its executive office in Helena, Montana, with 19 properties owned and 7 leased, all deemed in good condition Property Ownership Summary (as of Dec 31, 2020) | Status | Number of Locations | | :--- | :--- | | Owned | 19 | | Leased | 7 | | **Total** | **26** | - The net book value of premises and equipment owned by the Bank totaled **$58.76 million** as of December 31, 2020[188](index=188&type=chunk) [Item 3. Legal Proceedings](index=31&type=section&id=ITEM%203%2E%20LEGAL%20PROCEEDINGS%2E) The company is party to routine litigation arising in the normal course of business, which management does not expect to have a material adverse effect on its operations - The Bank is involved in routine litigation incidental to its business, which management believes will not have a material adverse effect on the Company's financial results[189](index=189&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=ITEM%204%2E%20MINE%20SAFETY%20DISCLOSURES%2E) This item is not applicable to the company - Not applicable[191](index=191&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=ITEM%205%2E%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES%2E) The company's common stock trades on the Nasdaq Global Market under "EBMT," with 6,775,447 shares outstanding as of December 31, 2020, and an active share repurchase program under which 62,776 shares were repurchased in 2020 - The company's common stock is traded on the Nasdaq Global Market under the symbol "**EBMT**" As of December 31, 2020, there were **6,775,447 shares outstanding**[196](index=196&type=chunk) - On July 23, 2020, the Board authorized a new plan to repurchase up to **100,000 shares** of common stock, under which **41,337 shares** were purchased in Q3 2020 at an average price of **$15.75**[198](index=198&type=chunk) - Under a prior plan that expired in July 2020, the company purchased **21,439 shares** during 2020[199](index=199&type=chunk) [Item 6. Selected Financial Data](index=32&type=section&id=ITEM%206%2E%20SELECTED%20FINANCIAL%20DATA%2E) This item has been omitted as the company qualifies as a smaller reporting company - This item has been omitted based on Eagle's status as a smaller reporting company[201](index=201&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=ITEM%207%2E%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%2E) The company's 2020 financial performance was strong, driven by higher mortgage banking operations and asset growth to $1.26 billion, with net income surging to $21.21 million due to increased noninterest income, despite a decreased net interest margin [Overview and COVID-19 Impact](index=32&type=section&id=Overview%20and%20COVID-19%20Impact) The company's earnings are primarily driven by net interest income, with a strategy to diversify its loan portfolio, while 2020 operations were significantly impacted by the COVID-19 pandemic, leading to PPP participation and loan modifications - As of December 31, 2020, the company had originated **$45.71 million** in SBA PPP loans for **764 customers**, with **$29.58 million** remaining outstanding[212](index=212&type=chunk) - As of December 31, 2020, loan modifications related to COVID-19 for **40 nonresidential borrowers** represented **$29.00 million**, or **3.5% of total loans**[214](index=214&type=chunk) - Key industry exposures as a percentage of total loans include hotels and lodging (**4.1%**), health and social assistance (**2.6%**), and bars and restaurants (**2.6%**)[213](index=213&type=chunk) [Financial Condition Analysis](index=38&type=section&id=Financial%20Condition%20Analysis) Total assets increased by 19.3% to $1.26 billion at year-end 2020, driven by loan growth and increased cash, while deposits grew by 27.7% to $1.03 billion, and shareholders' equity rose by 25.7% to $152.94 million Financial Condition Summary (December 31) | Metric | 2020 | 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | $1.26 billion | $1.05 billion | +19.3% | | Loans Receivable, Net | $829.5 million | $770.6 million | +7.6% | | Total Deposits | $1.03 billion | $809.0 million | +27.7% | | FHLB Advances & Borrowings | $17.1 million | $88.4 million | -80.7% | | Total Shareholders' Equity | $152.9 million | $121.7 million | +25.7% | - Nonperforming assets increased to **$8.50 million** (**0.68% of total assets**) at year-end 2020, up from **$5.48 million** (**0.52% of total assets**) at year-end 2019[260](index=260&type=chunk) - The allowance for loan losses increased to **$11.60 million**, or **1.38% of total loans**, at December 31, 2020, from **$8.60 million**, or **1.10% of total loans**, at December 31, 2019[271](index=271&type=chunk)[276](index=276&type=chunk) [Results of Operations Analysis (2020 vs. 2019)](index=50&type=section&id=Results%20of%20Operations%20Analysis%20%282020%20vs%2E%202019%29) Net income for 2020 significantly increased to $21.21 million, primarily driven by a surge in noninterest income from mortgage loan sales, despite a decrease in net interest margin due to the low-rate environment and PPP loans Results of Operations (Year Ended December 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Income | $43.17 million | $38.79 million | | Loan Loss Provision | $3.13 million | $2.63 million | | Noninterest Income | $49.07 million | $23.84 million | | Noninterest Expense | $60.67 million | $46.03 million | | **Net Income** | **$21.21 million** | **$10.87 million** | | **Diluted EPS** | **$3.11** | **$1.69** | - The increase in net income was primarily driven by a surge in noninterest income, with net gain on sale of mortgage loans increasing to **$36.39 million** in 2020 from **$16.68 million** in 2019[300](index=300&type=chunk) - Net interest margin decreased by **31 basis points** to **3.94%** in 2020 from **4.25%** in 2019, pressured by the low interest rate environment and low-yielding PPP loans[289](index=289&type=chunk) - The loan loss provision for 2020 included an additional **$1.40 million** specifically to address the potential economic impact of COVID-19[299](index=299&type=chunk) [Liquidity, Capital, and Market Risk](index=54&type=section&id=Liquidity%2C%20Capital%2C%20and%20Market%20Risk) The company maintained stable liquidity and was deemed "well capitalized" in 2020, exceeding all regulatory capital requirements, while actively managing interest rate risk with a positive impact on economic value of equity from a simulated rate increase - The Bank is deemed "**well capitalized**" and exceeded all minimum regulatory capital requirements as of December 31, 2020[314](index=314&type=chunk) Bank Capital Ratios (as of Dec 31, 2020) | Ratio | Actual Ratio | Minimum Required | | :--- | :--- | :--- | | Total Capital to RWA | 16.71% | 10.50% | | Tier 1 Capital to RWA | 15.46% | 8.50% | | Common Equity Tier 1 to RWA | 15.46% | 7.00% | | Tier 1 Leverage Ratio | 11.72% | 4.00% | - Interest rate sensitivity analysis at year-end 2020 showed that a **200 basis point increase** in rates would increase the Economic Value of Equity (EVE) by **15.0%**, which is within the Board's established risk limits[312](index=312&type=chunk)[322](index=322&type=chunk) - Commitments to extend credit increased to **$173.87 million** at year-end 2020 from **$142.79 million** at year-end 2019[324](index=324&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=ITEM%207A%2E%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK%2E) This item has been omitted as the company qualifies as a smaller reporting company - This item has been omitted based on Eagle's status as a smaller reporting company[325](index=325&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=56&type=section&id=ITEM%208%2E%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA%2E) This section contains the company's audited consolidated financial statements, accompanying notes, and the independent auditor's report, which identified the allowance for loan losses as a critical audit matter due to significant management judgment - This item includes the audited consolidated financial statements, notes, and the independent auditor's report[326](index=326&type=chunk) - The independent auditor, Moss Adams LLP, identified the Allowance for Loan Losses as a critical audit matter, highlighting the subjective and complex judgments required by management, particularly regarding qualitative factors[394](index=394&type=chunk)[396](index=396&type=chunk)[397](index=397&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=56&type=section&id=ITEM%209%2E%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE%2E) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure - None[327](index=327&type=chunk) [Item 9A. Controls and Procedures](index=57&type=section&id=ITEM%209A%2E%20CONTROLS%20AND%20PROCEDURES%2E) Management concluded that the company's disclosure controls and procedures, as well as internal control over financial reporting, were effective as of December 31, 2020, with no material changes identified during the fourth quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[329](index=329&type=chunk) - Management assessed internal control over financial reporting and concluded that it was effective as of December 31, 2020[332](index=332&type=chunk) [Item 9B. Other Information](index=57&type=section&id=ITEM%209B%2E%20OTHER%20INFORMATION%2E) The company reports no other information for this item - None[335](index=335&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=58&type=section&id=ITEM%2010%2E%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE%2E) Information regarding directors, executive officers, board committees, and the code of ethics is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the Company's 2021 Proxy Statement[337](index=337&type=chunk)[338](index=338&type=chunk) [Item 11. Executive Compensation](index=58&type=section&id=ITEM%2011%2E%20EXECUTIVE%20COMPENSATION%2E) Information regarding director and executive compensation is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the Company's 2021 Proxy Statement[337](index=337&type=chunk)[341](index=341&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=58&type=section&id=ITEM%2012%2E%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS%2E) Information regarding the beneficial ownership of the company's common stock is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the Company's 2021 Proxy Statement[337](index=337&type=chunk)[342](index=342&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=58&type=section&id=ITEM%2013%2E%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE%2E) Information regarding transactions with related persons and director independence is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the Company's 2021 Proxy Statement[337](index=337&type=chunk)[343](index=343&type=chunk) [Item 14. Principal Accounting Fees and Services](index=58&type=section&id=ITEM%2014%2E%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES%2E) Information regarding principal accounting fees and services is incorporated by reference from the company's definitive proxy statement for its 2021 Annual Meeting of Stockholders - Information is incorporated by reference from the Company's 2021 Proxy Statement[337](index=337&type=chunk)[344](index=344&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=58&type=section&id=ITEM%2015%2E%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES%2E) This section lists the financial statements, financial statement schedules, and various exhibits filed as part of the Form 10-K report, including merger agreements, corporate governance documents, and debt instruments - This section lists all documents filed as part of the report, including the consolidated financial statements and various exhibits[346](index=346&type=chunk) - Exhibits include merger agreements, certificates of incorporation, forms of debt securities, and numerous management contracts and compensatory plans[350](index=350&type=chunk)[351](index=351&type=chunk) [Item 16. Form 10-K Summary](index=61&type=section&id=ITEM%2016%2E%20FORM%2010%2DK%20SUMMARY%2E) The company has not provided a summary for this item - None[377](index=377&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission file number 1-34682 Eagle Bancorp Montana, Inc. (Exact name of small business issuer as specified in its charter) 27-144982 ...