Eagle Bancorp Montana — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $3.0 million ($0.38 diluted EPS) for the quarter, down from $3.7 million ($0.47 diluted EPS) in Q2 2026 and $3.6 million ($0.46 diluted EPS) in Q3 2025.
• Year-to-date net income increased to $10.7 million ($1.36 diluted EPS) compared to $10.1 million ($1.29 diluted EPS) in the same period in 2025.
• Total revenues were $25.1 million, up 3.8% from $24.2 million in Q2 2026 and 7.2% from $23.4 million in Q3 2025.
• Net interest income (before provision) increased 4.4% to $20.0 million in Q3 2026 versus $19.1 million in Q2 2026 and 7.0% versus $18.7 million in Q3 2025.
• Net interest margin (NIM) was 4.12% in Q3 2026, down 3 basis points from 4.15% in Q2 2026 but up 18 basis points from 3.94% in Q3 2025.
• Noninterest income was $5.1 million, an 8.1% increase from $4.7 million in Q3 2025.
• Noninterest expense was $19.4 million, up from $19.0 million in Q2 2026 and $18.4 million in Q3 2025, primarily driven by increases in salaries and employee benefits.
• Provision for credit losses was $1.9 million in Q3 2026, compared to $343,000 in Q2 2026 and $62,000 in Q3 2025.
• Net loan charge-offs were $29,000 in Q3 2026, down from $193,000 in Q2 2026 and $72,000 in Q3 2025.
• Total assets were $2.28 billion, up $162.2 million year-over-year and $156.2 million quarter-over-quarter.
• Total loans were $1.72 billion, up $159.0 million from June 30, 2026, and $159.6 million from September 30, 2025.
• Total deposits were $1.80 billion, up $11.9 million from June 30, 2026, and $49.9 million (2.8%) from September 30, 2025.
• Shareholders' equity was $192.1 million at September 30, 2026, down from $197.4 million at June 30, 2026, primarily due to an increase in accumulated other comprehensive loss from securities fair value declines.
• Book value per share was $24.12 at September 30, 2026, compared to $24.78 at June 30, 2026, and $23.45 at September 30, 2025.
• Tangible book value per share (non-GAAP) was $19.44 at September 30, 2026, compared to $20.07 at June 30, 2026, and $18.63 at September 30, 2025.
• Tangible common shareholders' equity to tangible assets was 6.90% at September 30, 2026, down from 7.66% at June 30, 2026 and 7.12% at September 30, 2025.
• The allowance for credit losses was $19.5 million (1.13% of total loans) at September 30, 2026, compared to $17.6 million (1.13%) at June 30, 2026, and $17.7 million (1.14%) at September 30, 2025.

Business Segments and Product Lines:

• Commercial real estate loans increased 17.0% to $784.7 million year-over-year.
• Commercial loans increased 22.4% to $175.0 million year-over-year.
• Agricultural and farmland loans increased 0.9% to $316.9 million year-over-year.
• Residential construction loans increased 64.3% to $58.2 million year-over-year.
• Home equity loans increased 8.7% to $115.9 million year-over-year.
• Residential mortgage loans decreased 5.4% to $141.0 million year-over-year.
• Commercial construction and development loans decreased 7.8% to $104.6 million year-over-year.
• Consumer loans decreased 17.5% to $21.1 million year-over-year.
• Net mortgage banking income was $2.9 million in Q3 2026, consistent with Q2 2026 and Q3 2025; year-to-date it increased 3.5% to $8.3 million.
• The company originated $80.8 million in new residential mortgage loans and sold $74.7 million in the quarter, with an average gross margin on sale of approximately 2.70%.

Risks and Challenges:

• Nonperforming loans increased to $8.7 million at September 30, 2026, from $4.2 million at June 30, 2026, primarily due to well-collateralized agricultural loans.
• The allowance for credit losses represented 224.0% of nonperforming loans at September 30, 2026, down from 423.5% at June 30, 2026.
• Shareholders' equity decreased due to increased interest rates reducing the fair value of securities available-for-sale.
• The company noted that borrower-specific deterioration did not meaningfully affect the Q3 2026 provision for credit losses.

Management Commentary and Tone:

• CEO Laura F. Clark stated the quarter was defined by record loan growth and continued strength in the core deposit franchise, noting growth occurred without compromising credit discipline or pricing.
• CFO Miranda J. Spaulding noted that funding cost reductions more than offset a modest decline in earning asset yields compared to the prior year, while funding costs remained relatively steady from the prior quarter.
• President and COO Darryl Rensmon highlighted strategic investments in team and technology to support long-term growth while maintaining disciplined expense management.
• Management expressed positive momentum entering the final quarter, aiming to protect net interest margin in a rising rate environment.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.1475 per share on October 22, 2026, payable on December 4, 2026, to shareholders of record on November 13, 2026.
• The current dividend represents an annualized yield of 2.58% based on the average closing stock price of $22.91 during Q3 2026.
• Available borrowing capacity was approximately $452.2 million at September 30, 2026, down from $575.0 million at June 30, 2026.
• Short-term FHLB advances were utilized in the quarter to support loan production, increasing to $196.8 million at September 30, 2026, from $52.1 million at June 30, 2026.
• The Bank's Tier 1 capital to adjusted total average assets was 10.62% as of September 30, 2026, and regulatory capital was deemed well capitalized.
• The estimated amount of uninsured deposits was approximately $369.3 million (20% of total deposits) at September 30, 2026.
• The company serves consumers and small businesses in Montana through 30 banking offices.