[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Eagle Bancorp Montana, Inc.'s unaudited consolidated financial statements for Q2 and H1 2020, detailing financial condition, income, and cash flows, with explanatory notes [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2020, total assets grew to $1.25 billion, an 18.4% increase from $1.05 billion at year-end 2019, driven by growth in loans and securities Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | Dec 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,248,434** | **$1,054,260** | **+18.4%** | | Total cash and cash equivalents | $52,888 | $24,918 | +112.3% | | Loans receivable, net | $830,329 | $770,635 | +7.7% | | Securities available-for-sale | $174,526 | $126,875 | +37.6% | | Goodwill | $20,798 | $15,836 | +31.3% | | **Total Liabilities** | **$1,106,905** | **$932,601** | **+18.7%** | | Total deposits | $955,444 | $808,993 | +18.1% | | **Total Shareholders' Equity** | **$141,529** | **$121,659** | **+16.3%** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2020, net income significantly increased to $5.7 million from $3.2 million in Q2 2019, primarily driven by a substantial increase in noninterest income Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | 6 Months 2020 | 6 Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $10,423 | $9,694 | $20,900 | $19,069 | | Loan loss provision | $1,227 | $697 | $1,897 | $1,301 | | Noninterest Income | $13,698 | $5,503 | $22,002 | $9,197 | | Noninterest Expense | $15,133 | $10,473 | $27,981 | $21,494 | | **Net Income** | **$5,735** | **$3,247** | **$9,662** | **$4,430** | | **Diluted EPS** | **$0.84** | **$0.51** | **$1.41** | **$0.69** | - Net gain on sale of loans was a major driver of income, increasing to **$7.92 million** in Q2 2020 from **$3.36 million** in Q2 2019, and to **$13.33 million** for the first six months of 2020 from **$5.96 million** in the prior year period[23](index=23&type=chunk) [Notes to the Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the financial statements, including the acquisition of Western Holding Company of Wolf Point (WHC) and COVID-19 related loan modifications - On January 1, 2020, Eagle completed its merger with Western Holding Company of Wolf Point (WHC) for a total consideration of **$14.97 million**, resulting in **$4.96 million** of goodwill[56](index=56&type=chunk)[62](index=62&type=chunk) - In response to COVID-19, the company offered payment deferrals for up to 90 days on **222 loans** totaling **$77.7 million** and interest-only payments for up to six months for **93 borrowers** with **$48.0 million** in loans as of June 30, 2020[115](index=115&type=chunk) - The company participated in the SBA's Paycheck Protection Program (PPP), funding **742 loans** totaling **$44.85 million** as of June 30, 2020[96](index=96&type=chunk)[190](index=190&type=chunk) - In June 2020, the company issued **$15 million** in subordinated notes due 2030 with a fixed rate of **5.50%** for the first five years[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting strong Q2 results driven by mortgage banking and the WHC acquisition, and addressing COVID-19 impacts [Recent Events](index=39&type=section&id=MD%26A%20-%20Recent%20Events) The company's Q2 2020 performance was strong, influenced by the COVID-19 pandemic and the acquisition of Western Holding Company (WHC) - The bank offered significant loan accommodations due to COVID-19, including **90-day deferrals** for **222 loans ($77.73 million)** and **interest-only payments** for **93 borrowers ($47.98 million)**[188](index=188&type=chunk) - The company actively participated in the Paycheck Protection Program (PPP), funding **742 loans** for its small business clients totaling **$44.85 million** by June 30, 2020[190](index=190&type=chunk) - The acquisition of Western Holding Company of Wolf Point (WHC) was completed on January 1, 2020, for total consideration of **$14.97 million**, including **$6.5 million** in cash and **$8.47 million** in stock[199](index=199&type=chunk) [Financial Condition](index=41&type=section&id=MD%26A%20-%20Financial%20Condition) Total assets grew 18.4% to $1.25 billion by June 30, 2020, driven by the WHC acquisition and organic growth, with significant increases in loans and deposits - Net loans receivable increased by **$59.7 million (7.7%)** to **$830.3 million**, with the WHC acquisition contributing **$43.4 million** of this growth[207](index=207&type=chunk) - Total deposits increased by **$146.5 million (18.1%)**, with noninterest-bearing checking accounts growing by **$71.2 million (35.6%)**[216](index=216&type=chunk) - Nonperforming loans increased to **$8.43 million (1.00% of total loans)** from **$5.45 million (0.70% of total loans)** at year-end 2019[214](index=214&type=chunk) - Shareholders' equity increased by **$19.9 million (16.3%)** to **$141.5 million**, primarily due to **$8.5 million** in stock issued for the WHC acquisition and **$9.7 million** in net income[218](index=218&type=chunk) [Results of Operations](index=45&type=section&id=MD%26A%20-%20Results%20of%20Operations) For Q2 2020, net income rose to $5.7 million from $3.2 million in Q2 2019, driven by a surge in noninterest income, particularly from gains on loan sales Q2 2020 vs Q2 2019 Performance (in millions) | Metric | Q2 2020 | Q2 2019 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $10.42 | $9.69 | +$0.73 | | Loan Loss Provision | $1.23 | $0.70 | +$0.53 | | Noninterest Income | $13.70 | $5.50 | +$8.20 | | Noninterest Expense | $15.13 | $10.47 | +$4.66 | | **Net Income** | **$5.74** | **$3.25** | **+$2.49** | - The increase in noninterest income was largely due to a rise in net gain on sale of loans to **$7.92 million** in Q2 2020 from **$3.36 million** in Q2 2019, driven by higher mortgage origination volume and margins[235](index=235&type=chunk) - The loan loss provision for Q2 2020 included a specific qualitative adjustment of approximately **$777,000** due to the economic slowdown from COVID-19[235](index=235&type=chunk) - Net interest margin for Q2 2020 was **3.85%**, a decrease from **4.31%** in Q2 2019, reflecting pressure from the lower interest rate environment[222](index=222&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=MD%26A%20-%20Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity and capital position as of June 30, 2020, with all capital ratios exceeding regulatory requirements - The Bank is deemed "well capitalized" under regulatory standards as of June 30, 2020[253](index=253&type=chunk) Key Capital Ratios (as of June 30, 2020) | Ratio | Actual Level | Minimum for Adequacy | | :--- | :--- | :--- | | Total risk-based capital to risk weighted assets | 15.61% | 10.50% | | Tier I capital to risk weighted assets | 14.43% | 8.50% | | Common equity tier I capital to risk weighted assets | 14.43% | 7.00% | | Tier I capital to adjusted total average assets | 11.14% | 4.00% | - The bank utilized the Federal Reserve's Payroll Protection Program Loan Funding (PPPLF) facility, with **$23.79 million** in borrowings outstanding as of June 30, 2020[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section has been omitted as allowed for a smaller reporting company - The company, as a smaller reporting company, has omitted the disclosures for this item[264](index=264&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, with a previously identified material weakness remediated - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2020[265](index=265&type=chunk) - A material weakness in internal control over financial reporting related to the review of manual journal entries, identified at year-end 2019, was successfully remediated as of June 30, 2020[266](index=266&type=chunk)[267](index=267&type=chunk) [PART II. OTHER INFORMATION](index=53&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any pending material legal proceedings beyond those in the ordinary course of business - There are no material legal proceedings involving the Company or its subsidiary[269](index=269&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2019 - No material changes in risk factors were reported since the last Annual Report on Form 10-K[271](index=271&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, including the expiration of a prior plan and authorization of a new one - During Q2 2020, the company repurchased **1,281 shares** of its common stock at an average price of **$16.95 per share** under its July 2019 plan[275](index=275&type=chunk) - On July 23, 2020, the Board authorized a new stock repurchase plan for up to **100,000 shares**, expiring July 23, 2021[272](index=272&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including corporate governance documents, debt agreements, and CEO/CFO certifications - Filed exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[283](index=283&type=chunk) - The Form of Subordinated Note Purchase Agreement dated June 10, 2020, is included as an exhibit[283](index=283&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 March 31, 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) Delaware 27-1 ...

Table of Contents 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, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |---------------------------------------------------------------------|-----------------------------------| | For the transition period from \nCommission file num ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 [ ] 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. Website address: www.opportunitybank.com | --- | --- | |--------------- ...

Financial Performance - Net interest income for the three months ended June 30, 2019, was $9,694 thousand, compared to $7,810 thousand for the same period in 2018, reflecting a year-over-year increase of 24.1%[24] - Noninterest income for the three months ended June 30, 2019, totaled $5,503 thousand, significantly higher than $2,715 thousand for the same period in 2018, marking an increase of 102.5%[24] - Net income for the three months ended June 30, 2019, was $3,247,000, compared to $1,333,000 for the same period in 2018, representing a 143.5% increase[30] - Basic and diluted earnings per share for the three months ended June 30, 2019, were both $0.51, up from $0.24 in the same period of 2018, reflecting a 112.5% increase[30] - Comprehensive income for the three months ended June 30, 2019, was $4,401,000, compared to $1,265,000 for the same period in 2018, indicating a significant increase[30] - Net income for June 2019 was $4,430,000, a significant increase from $1,906,000 in 2018, representing a growth of approximately 132%[39] Asset Growth - Total assets increased to $1,007,725 thousand as of June 30, 2019, up from $853,903 thousand at December 31, 2018, representing a growth of approximately 17.9%[18] - Total assets reached $1,000,701 thousand in 2019, up from $823,916 thousand in 2018, marking a growth of 21.5%[210] - Total loans receivable amounted to $753.649 million, an increase from $618.031 million as of December 31, 2018, representing a growth of approximately 21.9%[88] - Loans receivable increased by $134.35 million, or 22.0%, to $744.68 million at June 30, 2019, from $610.33 million at December 31, 2018[186] Deposit Growth - Total deposits rose to $748,388 thousand, an increase of 19.4% from $626,611 thousand at the end of 2018[21] - The net increase in deposits was $29,071,000 in June 2019, up from $10,421,000 in 2018, indicating strong deposit growth[44] - Total deposits increased by $121.78 million, or 19.4%, to $748.39 million at June 30, 2019, from $626.61 million at December 31, 2018[201] Loan Loss Provisions - The provision for loan losses was $697 thousand for the three months ended June 30, 2019, compared to $24 thousand for the same period in 2018, indicating a substantial increase in provisions[24] - The allowance for loan losses increased to $7,750 thousand as of June 30, 2019, compared to $6,600 thousand at December 31, 2018, reflecting a rise of 17.4%[18] - The total allowance for loan loss to nonperforming loans ratio improved to 206.39% at June 30, 2019, compared to 175.21% at December 31, 2018[199] Noninterest Expenses - Total noninterest expense for the three months ended June 30, 2019, was $10,473,000, an increase of 18% from $8,875,000 in the same period of 2018[30] - Salaries and employee benefits increased to $6,510,000 for the three months ended June 30, 2019, from $5,461,000 in the same period of 2018, a rise of 19.2%[30] - Advertising expenses decreased to $212,000 for the three months ended June 30, 2019, down from $298,000 in the same period of 2018, a decline of 28.9%[30] Acquisition and Merger - The total consideration paid for the merger with Big Muddy Bancorp was $16,436,000, which included $1,000 in cash and $16,435,000 in common stock issued[53] - The company completed the acquisition of Big Muddy Bancorp for a total consideration of $16.44 million, primarily in common stock[182] Investment and Securities - The fair value of total investment securities as of June 30, 2019, was $124,065,000[75] - The total fair value of available-for-sale securities was $14,161,000 as of June 30, 2019, including U.S. government and agency securities[149] - The company’s management continues to evaluate securities for impairment at least quarterly, ensuring proactive risk management in its investment portfolio[82] Financial Ratios and Metrics - The net interest margin, which is the difference between interest income and interest expense, is a key component of the bank's earnings[177] - The interest rate spread and the relative amounts of loans and investments significantly affect net interest income, which is the largest component of operating income[206] - The average yield on investment securities was 2.72% in 2019, compared to 2.65% in 2018[210] Future Outlook - Future outlook and guidance were not explicitly mentioned in the provided content, indicating a potential area for further inquiry in the earnings call[30]

Financial Performance - Net interest income after loan loss provision rose to $8,771,000 for the three months ended March 31, 2019, up from $6,345,000 in the same period of 2018, representing an increase of about 38.3%[20] - Net income for the three months ended March 31, 2019, was $1,183,000, compared to $573,000 for the same period in 2018, indicating a year-over-year growth of approximately 106.3%[23] - Basic earnings per share (EPS) for the three months ended March 31, 2019, was $0.18, up from $0.11 in the same period of 2018, representing a growth of 63.6%[23] - Comprehensive income for the same period was $2,308 million, a significant recovery from a loss of $1,291 million in the prior year[25] - The company reported a total of $2,861,000 in loans past due 30-89 days as of March 31, 2019, which is a slight increase from $2,032,000 at December 31, 2018[72] Asset Growth - Total assets increased to $979,603,000 as of March 31, 2019, compared to $853,903,000 at December 31, 2018, reflecting a growth of approximately 14.7%[14] - Loans receivable net of deferred loan fees increased to $720,920,000 as of March 31, 2019, from $610,333,000 at December 31, 2018, showing a growth of approximately 18.1%[14] - Total deposits increased to $741,045,000 as of March 31, 2019, from $626,611,000 at December 31, 2018, marking a rise of about 18.2%[17] - The total shareholders' equity increased to $112,292 million as of March 31, 2019, up from $94,806 million at the beginning of the year[27] Expense Management - Noninterest expense for the three months ended March 31, 2019, was $11,268,000, compared to $8,324,000 in the same period of 2018, reflecting an increase of approximately 35.5%[23] - The provision for loan losses was $604,000 for the three months ended March 31, 2019, compared to $502,000 in the same period of 2018, indicating an increase of about 20.4%[20] Investment Activities - The company reported net cash used in investing activities of $11,695 million in Q1 2019, compared to $5,881 million in Q1 2018, indicating increased investment outflows[31] - The total amortized cost of investment securities was $140,437 as of March 31, 2019, with a fair value of $140,161, reflecting a slight decrease in value[44] Mergers and Acquisitions - The company acquired Big Muddy Bancorp, Inc., issuing 10 million shares and $16,425 million in paid-in capital[27] - The company merged with Big Muddy Bancorp, Inc. on January 1, 2019, expanding its operations and branch network[37] - The total consideration paid for the acquisition of Big Muddy Bancorp, Inc. was $16.44 million, primarily related to common stock issued[180] Loan Portfolio - Total loans increased to $729,103,000 as of March 31, 2019, up from $721,714,000 at December 31, 2018, representing a growth of approximately 1.1%[71] - The total amount of troubled debt restructured loans was $23,000, with no charge-off incurred, indicating effective management of restructured loans[82] - The total nonperforming loans to total loans ratio increased to 0.73% as of March 31, 2019, compared to 0.61% at December 31, 2018[199] Cash Flow - Cash flows from operating activities provided $1,283 million in Q1 2019, down from $2,107 million in Q1 2018[31] - Cash and cash equivalents at the end of the period were $11,279, down from $12,911 at the end of the same period in 2018, indicating a decrease of 12.6%[34] Market Presence - The bank currently operates 22 full-service branches, enhancing its market presence in Montana[38] - The company has evaluated subsequent events after March 31, 2019, for recognition and/or disclosure, indicating ongoing assessment of financial position[42]

Acquisition Details - The total consideration for the acquisition of Ruby Valley Bank was $18.93 million, consisting of $9.90 million in cash and $9.03 million in common stock[16]. - The total consideration for the acquisition of Big Muddy Bancorp was $16.4 million, paid entirely in Eagle common stock[20]. - The company completed a merger with Big Muddy Bancorp, acquiring approximately $108.00 million in assets, $92.00 million in deposits, and $92.00 million in gross loans[194]. Loan Portfolio Composition - As of December 31, 2018, commercial real estate and commercial business loans constituted approximately 65.56% of total loans[23]. - The Bank's residential 1-4 family mortgage loans amounted to $116.94 million, representing 18.92% of the total loan portfolio as of December 31, 2018[43]. - Residential 1-4 family construction loans accounted for $27.17 million, or 4.40% of the total loan portfolio at December 31, 2018[46]. - Commercial real estate loans constituted 41.54% of the Bank's total loan portfolio, amounting to $256.78 million as of December 31, 2018[48]. - Commercial construction and development loans accounted for $41.74 million, or 6.75% of the total loan portfolio at the same date[49]. - Home equity loans represented $52.16 million, or 8.44% of total loans as of December 31, 2018[50]. - Consumer loans totaled $16.57 million, making up 2.68% of the Bank's total loan portfolio as of December 31, 2018[52]. - Commercial business loans amounted to $59.05 million, or 9.56% of the total loan portfolio at December 31, 2018[56]. - Commercial real estate and commercial business loans represented 53.13% and 12.43% of the total loan portfolio, respectively, as of December 31, 2018[187]. Financial Performance and Income - The Bank's noninterest income from mortgage loan servicing was $2.30 million for the year ended December 31, 2018, compared to $2.13 million in 2017[42]. - Wealth management services income was $536,000 in 2018, down from $624,000 in 2017, representing a decrease of approximately 14.1%[79]. - The company recorded $279.74 million in mortgage loans sold during 2018, indicating significant growth in noninterest income from mortgage banking activities[150]. - The Bank's earnings depend primarily on net interest income, which is influenced by the interest rate spread and the average balance of interest-earning assets[186]. Regulatory Compliance and Capital Requirements - The Dodd-Frank Act has increased regulatory compliance costs and burdens for the company, affecting its operational activities[85]. - The company is required to maintain a minimum Tier 1 capital ratio of 7.875% and a total capital ratio of 9.875% as per regulatory standards[102]. - The Dodd-Frank Act established a minimum reserve ratio of 1.35% for the Deposit Insurance Fund, which the FDIC achieved in 2018 with a ratio of 1.36%[100]. - The company must comply with new capital ratio requirements phased in between January 1, 2015, and January 1, 2019, including a common equity Tier 1 capital ratio of 6.375%[106]. - The capital conservation buffer, when fully phased-in, will require a minimum of 2.5% of common equity Tier 1 capital to total risk-weighted assets[107]. - The FDIC assesses deposit insurance premiums based on an institution's average total assets minus its average tangible equity, with rates ranging from 2.5 to 45 basis points[99]. - The company is subject to extensive regulation by the Montana Division of Banking and the FDIC, ensuring compliance with safety and soundness standards[84]. - As of December 31, 2018, the Company and the Bank met all capital adequacy requirements under the Basel III Capital rules, including a common equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0%, and a total capital ratio of 10.0%[108]. - The Bank's capital ratios met the "well capitalized" standards, indicating a strong financial position[109]. Risk Factors - The Company faces risks associated with economic conditions that could adversely affect borrowers' ability to repay loans, impacting financial performance[128]. - A decline in home values could lead to decreased loan originations and increased delinquencies and defaults, adversely impacting operational results[142]. - Changes in interest rates significantly affect the company's net interest income, which is the difference between interest income earned and interest expense paid[146]. - The allowance for credit losses may not be sufficient to cover actual loan losses, potentially leading to decreased earnings[132]. Operational Strategy and Growth - The Bank operates 22 branch offices and 19 ATMs across Montana, enhancing its market presence[15]. - The Bank's strategy includes diversifying its portfolio and maintaining strong asset quality to ensure sustained net earnings[22]. - The company plans to pursue an organic growth strategy while regularly evaluating potential acquisitions and expansion opportunities[154]. - The company intends to continue emphasizing the origination of commercial real estate and commercial business loans, which generally carry more risk than residential loans[141]. Employee and Workforce Information - As of December 31, 2018, the company employed 235 full-time and 14 part-time employees, indicating a stable workforce[82]. Shareholder Information - The closing price of the common stock on December 31, 2018, was $16.50 per share, with 5,477,652 shares outstanding[177]. - The Bank paid dividends of $0.0925 per share for the quarter ended December 31, 2018[178]. - The Board authorized the repurchase of up to 100,000 shares of common stock on July 19, 2018, with 36,000 shares purchased in 2019 at an average price of $17.49 per share[179]. - Future dividends on common stock may be affected by various factors, including regulatory requirements and the bank's earnings level[151].