Eagle Bancorp Montana(US:EBMT)2024-11-13 19:43Financial 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]