Eagle Bancorp Montana(US:EBMT)2025-11-05 16:24Financial Performance - Net income for the three months ended September 30, 2025, was $3,630 thousand, up 34.0% from $2,709 thousand for the same period in 2024 [24]. - Basic earnings per common share increased to $0.47 for the three months ended September 30, 2025, compared to $0.35 for the same period in 2024, representing a growth of 34.3% [24]. - Net income for the nine months ended September 30, 2025, was $10,106,000, compared to $6,345,000 for the same period in 2024, representing a 59.5% increase [31]. - Comprehensive income for the three months ended September 30, 2025, was $6,718 thousand, compared to $8,490 thousand for the same period in 2024, a decrease of 21.0% [25]. - For the three months ended September 30, 2025, net income available to common shareholders was $3,630,000, compared to $2,709,000 for the same period in 2024, representing an increase of 34% [96]. - Net income for the nine months ended September 30, 2025, was $10.11 million, a 59.3% increase from $6.35 million in the same period of 2024 [164]. Asset and Deposit Growth - Total assets increased to $2,119,806 thousand as of September 30, 2025, compared to $2,103,090 thousand at December 31, 2024, reflecting a growth of approximately 0.79% [16]. - Total deposits rose to $1,752,179 thousand as of September 30, 2025, from $1,681,228 thousand at December 31, 2024, marking an increase of 4.23% [18]. - Net increase in deposits was $70,951,000 in 2025, significantly higher than $15,317,000 in 2024, reflecting strong customer confidence [34]. - Total deposits increased to $1,752,179,000 as of September 30, 2025, compared to $1,681,228,000 at December 31, 2024, reflecting a growth of approximately 4.23% [89]. - Total liabilities of $1.93 billion at September 30, 2025, which is a $4.99 million increase or 0.3% [126]. Loan Portfolio and Credit Quality - As of September 30, 2025, total loans receivable amounted to $1,557,771,000, an increase from $1,520,646,000 as of December 31, 2024, representing a growth of approximately 2.4% [66]. - The allowance for credit losses was $17,740 thousand as of September 30, 2025, compared to $16,850 thousand at December 31, 2024, indicating a rise of 5.3% [16]. - The company reported a provision for credit losses of $62 thousand for the three months ended September 30, 2025, down from $277 thousand for the same period in 2024, indicating improved credit quality [24]. - The provision for credit losses increased to $1,142,000 in 2025 from $554,000 in 2024, indicating a rise in expected credit losses [31]. - The total loans outstanding as of September 30, 2025, reached $1,557,771,000, with $1,533,311,000 classified as pass loans [73]. - The company maintained a strong focus on credit quality, with a significant portion of its loan portfolio classified as pass loans, totaling $1,533,311,000 [73]. Income and Expenses - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $18,626 thousand, compared to $15,525 thousand for the same period in 2024, an increase of 19.5% [24]. - Total noninterest expense for the three months ended September 30, 2025, was $18,387 thousand, an increase of 6.5% from $17,270 thousand for the same period in 2024 [24]. - Noninterest income for the nine months ended September 30, 2025, totaled $13,540 thousand, compared to $13,204 thousand for the same period in 2024, reflecting a growth of 2.54% [25]. - Noninterest income totaled $4.72 million for the three months ended September 30, 2025, a decrease of 5.3% from $4.98 million in 2024 [158]. - Noninterest expense increased to $53.32 million, up 3.3% from $51.61 million, with salaries and employee benefits being the primary contributor [171]. Capital and Regulatory Compliance - The Bank's regulatory capital exceeded all applicable requirements, maintaining a "well capitalized" status as of September 30, 2025 [185]. - As of September 30, 2025, the total risk-based capital to risk-weighted assets ratio is 13.79%, exceeding the minimum required ratio of 10.00% [186]. - The Tier 1 capital to risk-weighted assets ratio is 12.67%, above the minimum required ratio of 8.00% [186]. - Common equity Tier 1 capital to risk-weighted assets ratio stands at 12.67%, surpassing the minimum required ratio of 6.50% [186]. - The Bank's available borrowing capacity was approximately $508 million as of September 30, 2025, up from $404 million at the end of 2024 [176]. Market and Economic Conditions - The impact of inflation is reflected in increased operational costs, with interest rates having a more significant effect on performance than general inflation levels [187]. - The Bank's strategy includes diversifying the loan portfolio, which has led to an increase in agricultural loans with a higher interest rate [122]. - The Bank's net interest income is influenced by the interest rate spread, which is affected by the federal funds target rate, decreased to 4.25% during the nine months ended September 30, 2025 [124]. Miscellaneous - The Company completed the merger with First Community Bancorp, Inc. on April 30, 2022, which included nine branches in Montana [38]. - The Company performed a goodwill impairment test as of August 31, 2024, concluding that goodwill was not impaired, with annual tests scheduled for October 31 [50]. - The Company adopted ASU No. 2023-07 for segment reporting, effective for fiscal years beginning after December 15, 2023, with no significant impact on financial disclosures [54].