UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
| | 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
Eagle Bancorp Montana, Inc.
(Exact name of registrant as specified in its charter)
| | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip code)
(
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| | | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | |
| Non-accelerated filer ☐ | Smaller reporting company |
|
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (defined in Rule 12b-2 of the Exchange Act). Yes
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:
| Common stock, par value $0.01 per share | |
As of October 31, 2026
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
| PART I. |
FINANCIAL INFORMATION |
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| Item 1. |
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Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2026 and 2025 |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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| Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
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| Item 4. |
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| PART II. |
OTHER INFORMATION |
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| Item 1. |
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| Item 1A. | Risk Factors | 36 | |
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| Item 4. |
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| Item 5. |
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| Item 6. |
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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
Cautionary Note Regarding Forward-Looking Statements
This report includes “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. These forward-looking statements include, but are not limited to:
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statements of our goals, intentions and expectations; |
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statements regarding our business plans, prospects, growth and operating strategies; |
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statements regarding the asset quality of our loan and investment portfolios; and |
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estimates of our risks and future costs and benefits. |
These forward-looking statements are based on current beliefs and expectations of the management of Eagle Bancorp Montana, Inc. (“Eagle” or the “Company”) and Opportunity Bank of Montana (“OBMT” or the “Bank”), Eagle’s wholly-owned subsidiary, and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
The following factors, among others, could cause the Company’s actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
| ● |
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and liquidity requirements; |
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local, regional, national and international economic conditions or macroeconomic instability (including any economic slowdown or recession, inflation, interest rate changes, credit loss trends, unemployment, changes in housing or securities markets, or other factors) and the impact of the same on Eagle and its customers; |
| ● | volatility, disruption, or uncertainty in national and international financial markets, including as a result of geopolitical developments, including the war in the Middle East; | |
| ● | the effects of any U.S. federal government shutdown, closures or significant staff reductions in agencies regulating or otherwise impacting Eagle's business; | |
| ● | the direct or indirect impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including the implementation of tariffs and other protectionist trade policies, including any reciprocal tariffs by foreign countries, and any uncertainties related thereto; | |
| ● |
competition among banks, financial holding companies and other traditional and non-traditional financial service providers; |
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risks related to the concentration of our business in Montana, including risks associated with changes in the prices, values and sales volume of residential and commercial real estate in Montana; |
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inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments or reduces loan demand; |
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our ability to attract deposits and other sources of funding or liquidity; |
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| ● | possible changes in governmental monetary and fiscal policies; | |
| ● | volatility in Eagle's stock price due to investor sentiment and perception of the banking industry; | |
| ● | the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; | |
| ● | an inability to access capital markets or maintain deposits or borrowing costs, or unexpected outflows of deposits which may require us to sell investment securities at a loss; | |
| ● | our ability to assess and monitor the effect of evolving uses of artificial intelligence on our business and operations; | |
| ● | our ability to navigate differing environmental, social, governmental, and sustainability concerns among governmental administrations, our stakeholders, and other activists that may arise from our business activities; |
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changes or volatility in the securities markets that lead to impairment in the value of our investment securities and goodwill; |
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our ability to implement our growth strategy, including identifying and consummating suitable acquisitions, raising additional capital to finance such transactions, entering new markets, possible failures in realizing the anticipated benefits from such acquisitions and an inability of our personnel, systems and infrastructure to keep pace with such growth; |
| ● | limitations on Eagle's ability to receive dividends from its subsidiaries; | |
| ● | unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; | |
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the effect of acquisitions we may make, if any, including, without limitation, the failure to achieve expected revenue growth and/or expense savings from such acquisitions; |
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potential impairment on the goodwill we have recorded or may record in connection with business acquisitions; |
| ● | our ability to enter new markets successfully and capitalize on growth opportunities; | |
| ● | the need to retain capital for strategic or regulatory reasons; | |
| ● | changes in consumer spending, borrowing and savings habits; | |
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our ability to continue to increase and manage our commercial and residential real estate, multi-family and commercial business loans; |
| ● | our ability to implement new technologies and maintain secure and reliable technology systems; | |
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our ability to develop and maintain secure and reliable information technology systems, effectively defend ourselves against cyberattacks, or recover from breaches to our cybersecurity infrastructure; |
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the failure of assumptions underlying the establishment of allowance for possible loan losses and other estimates; |
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changes in the financial performance and/or condition of our borrowers and their ability to repay their loans when due; and |
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the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters. |
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. For a further list and description of various risks, relevant factors and uncertainties that could cause future results or events to differ materially from those expressed or implied in our forward-looking statements, see the Part II, Item 1A, “Risk Factors” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained elsewhere in this report, as well as our Annual Report on Form 10-K for the year ended December 31, 2025, any subsequent Reports on Form 10-Q and Form 8-K, and other filings with the SEC. We do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur, or of which we hereafter become aware.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands, Except for Share Data)
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS: | ||||||||
| Cash and due from banks | $ | $ | ||||||
| Interest-bearing deposits in banks | ||||||||
| Total cash and cash equivalents | ||||||||
| Securities available-for-sale, at fair value (amortized cost of $ at September 30, 2026 and $ at December 31, 2025) | ||||||||
| Federal Home Loan Bank ("FHLB") stock | ||||||||
| Federal Reserve Bank ("FRB") stock | ||||||||
| Mortgage loans held-for-sale, at fair value | ||||||||
| Loans receivable, net of allowance for credit losses of $ at September 30, 2026 and $ at December 31, 2025 | ||||||||
| Accrued interest and dividends receivable | ||||||||
| Mortgage servicing rights, net | ||||||||
| Premises and equipment, net | ||||||||
| Cash surrender value of life insurance, net | ||||||||
| Goodwill | ||||||||
| Core deposit intangible, net | ||||||||
| Deferred tax asset, net | ||||||||
| Other assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES: | ||||||||
| Deposit accounts: | ||||||||
| Noninterest-bearing | $ | $ | ||||||
| Interest-bearing | ||||||||
| Total deposits | ||||||||
| Accrued expenses and other liabilities | ||||||||
| Federal Funds Purchased | ||||||||
| FHLB advances and other borrowings | ||||||||
| Other long-term debt: | ||||||||
| Principal amount | ||||||||
| Unamortized debt issuance costs | ( | ) | ( | ) | ||||
| Total other long-term debt, net | ||||||||
| Total liabilities | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Preferred stock (par value $ per share; shares authorized; shares issued or outstanding) | ||||||||
| Common stock (par value $ per share; shares authorized; shares issued at September 30, 2026 and December 31, 2025; shares outstanding at September 30, 2026 and shares outstanding at December 31, 2025) | ||||||||
| Additional paid-in capital | ||||||||
| Unallocated common stock held by Employee Stock Ownership Plan ("ESOP") | ( | ) | ( | ) | ||||
| Treasury stock, at cost ( shares at September 30, 2026 and shares at December 31, 2025) | ( | ) | ( | ) | ||||
| Retained earnings | ||||||||
| Accumulated other comprehensive loss, net of tax | ( | ) | ( | ) | ||||
| Total shareholders' equity | ||||||||
| Total liabilities and shareholders' equity | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except for Per Share Data)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| INTEREST AND DIVIDEND INCOME: | ||||||||||||||||
| Interest and fees on loans | $ | $ | $ | $ | ||||||||||||
| Securities available-for-sale | ||||||||||||||||
| FHLB and FRB dividends | ||||||||||||||||
| Other interest income | ||||||||||||||||
| Total interest and dividend income | ||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||
| Deposits | ||||||||||||||||
| FHLB advances and other borrowings | ||||||||||||||||
| Other long-term debt | ||||||||||||||||
| Total interest expense | ||||||||||||||||
| NET INTEREST INCOME | ||||||||||||||||
| Provision for credit losses | ||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | ||||||||||||||||
| NONINTEREST INCOME: | ||||||||||||||||
| Service charges on deposit accounts | ||||||||||||||||
| Mortgage banking, net | ||||||||||||||||
| Interchange and ATM fees | ||||||||||||||||
| Appreciation in cash surrender value of life insurance | ||||||||||||||||
| Other noninterest income | ||||||||||||||||
| Total noninterest income | ||||||||||||||||
| NONINTEREST EXPENSE: | ||||||||||||||||
| Salaries and employee benefits | ||||||||||||||||
| Occupancy and equipment expense | ||||||||||||||||
| Data processing | ||||||||||||||||
| Software subscriptions | ||||||||||||||||
| Advertising | ||||||||||||||||
| Amortization | ||||||||||||||||
| Loan costs | ||||||||||||||||
| Federal Deposit Insurance Corporation ("FDIC") insurance premiums | ||||||||||||||||
| Professional and examination fees | ||||||||||||||||
| Other noninterest expense | ||||||||||||||||
| Total noninterest expense | ||||||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | ||||||||||||||||
| Provision for income taxes | ||||||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | $ | $ | $ | ||||||||||||
| DILUTED EARNINGS PER COMMON SHARE | $ | $ | $ | $ | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| NET INCOME | $ | $ | $ | $ | ||||||||||||
| OTHER ITEMS OF COMPREHENSIVE (LOSS) INCOME: | ||||||||||||||||
| Change in fair value of investment securities available-for-sale | ( | ) | ( | ) | ||||||||||||
| Income tax benefit (provision) related to securities available-for-sale | ( | ) | ( | ) | ||||||||||||
| Total other comprehensive (loss) income, net of tax | ( | ) | ( | ) | ||||||||||||
| COMPREHENSIVE (LOSS) INCOME | $ | ( | ) | $ | $ | $ | ||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the three and nine months ended September 30, 2026 and 2025
(Dollars in Thousands, Except for Per Share Data)
(Unaudited)
| Accumulated | ||||||||||||||||||||||||||||||||
| Additional | Unallocated | Other | ||||||||||||||||||||||||||||||
| Preferred | Common | Paid-In | ESOP | Treasury | Retained | Comprehensive | ||||||||||||||||||||||||||
| Stock | Stock | Capital | Shares | Stock | Earnings | (Loss) Income | Total | |||||||||||||||||||||||||
| Balance at July 1, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Dividends paid ($ per share) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||
| ESOP shares allocated ( shares) | ( | ) | ||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Balance at July 1, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | ||||||||||||||||||||||||||||||||
| Dividends paid ($ per share) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||
| ESOP shares allocated ( shares) | ( | ) | ||||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Dividends paid ($ per share) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||
| Treasury stock reissued for stock incentive plans ( shares at $ average cost per share) | ( | ) | ||||||||||||||||||||||||||||||
| ESOP shares allocated ( shares) | ( | ) | ||||||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Balance at January 1, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | ||||||||||||||||||||||||||||||||
| Dividends paid ($ per share) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Stock compensation expense | ||||||||||||||||||||||||||||||||
| ESOP shares allocated ( shares) | ( | ) | ||||||||||||||||||||||||||||||
| Treasury stock purchased ( shares at $ average cost per share) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Balance at September 30, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Provision for credit losses | ||||||||
| Depreciation | ||||||||
| Net amortization of investment securities premiums and discounts | ||||||||
| Amortization of mortgage servicing rights | ||||||||
| Amortization of right-of-use assets | ||||||||
| Amortization of core deposit intangibles | ||||||||
| Compensation expense related to restricted stock awards | ||||||||
| ESOP compensation expense for allocated shares | ||||||||
| Net gain on sale of loans | ( | ) | ( | ) | ||||
| Originations of loans held-for-sale | ( | ) | ( | ) | ||||
| Proceeds from sales of loans held-for-sale | ||||||||
| Net loss on sale and write-downs of real estate owned and other repossessed assets | ||||||||
| Net gain on insurance proceeds related to premises and equipment | ( | ) | ||||||
| Net gain on sale/disposal of premises and equipment | ( | ) | ||||||
| Net appreciation in cash surrender value of life insurance | ( | ) | ( | ) | ||||
| Net change in: | ||||||||
| Accrued interest and dividends receivable | ( | ) | ( | ) | ||||
| Other assets | ( | ) | ||||||
| Accrued expenses and other liabilities | ( | ) | ( | ) | ||||
| Net cash provided by operating activities | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Activity in available-for-sale securities: | ||||||||
| Maturities, principal payments and calls | ||||||||
| Purchases | ( | ) | ( | ) | ||||
| FHLB stock (purchased) redeemed | ( | ) | ||||||
| Loan origination and principal collection, net | ( | ) | ( | ) | ||||
| Purchase of bank owned life insurance | ( | ) | ||||||
| Insurance proceeds related to premises and equipment | ||||||||
| Proceeds from sale of premises and equipment | ||||||||
| Purchases of premises and equipment, net | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net increase in deposits | ||||||||
| Net short-term advances on FHLB and other borrowings | ||||||||
| Advances on long-term FHLB and other borrowings | ||||||||
| Payments on long-term FHLB and other borrowings | ( | ) | ( | ) | ||||
| Purchase of treasury stock | ( | ) | ||||||
| Dividends paid | ( | ) | ( | ) | ||||
| Net cash provided by financing activities | ||||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | ||||
| CASH AND CASH EQUIVALENTS, beginning of period | ||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In Thousands)
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid during the period for interest | $ | $ | ||||||
| Cash paid during the period for income taxes, net of refunds | ||||||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| (Decrease) increase in fair value of securities available-for-sale | $ | ( | ) | $ | ||||
| Mortgage servicing rights recognized | ||||||||
| Right-of-use assets obtained in exchange for lease liabilities | ||||||||
| Loans transferred to real estate and other assets acquired in foreclosure | ||||||||
| Decrease in commitments to invest in Low-Income Housing Tax Credit projects | ( | ) | ||||||
| Premises and equipment acquired through non-cash trade-in | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Eagle Bancorp Montana, Inc. (“Eagle” or the “Company”), is a Delaware corporation that holds
Eagle Bancorp Statutory Trust I (the "Trust") was established in September 2005 and is owned
In March 2021, the Bank established a subsidiary, Opportunity Housing Fund, LLC ("OHF"), to invest in Low-Income Housing Tax Credit ("LIHTC") projects. The LIHTC program is designed to encourage capital investment in construction and rehabilitation of low-income housing. During the year ended December 31,2021, OHF made investments in two LIHTC projects. Tax credits are allowable over a 10-year period. Amortizing investments in LIHTC projects are included in on the condensed consolidated statements of financial condition and totaled $
Opportunity Financial Services, Inc. ("OFS") facilitates deferred payment contracts for customers that produce agricultural products. The revenue from these contracts is accounted for in accordance with ASC Topic 606. The Company is considered an agent in these contracts, as: (i) the Company facilitates payment from customer to supplier, (ii) the Company does not take inventory of commodities as they are delivered by supplier to the customer, (iii) pricing of commodities is determined by the market, (iv) consideration on deferred payment contracts is insignificant to the Company and (v) the Company’s exposure to credit risk is minimal. Revenue is recognized net of expenses and reported in other noninterest income in the financial statements. Commodity sales income and the corresponding commodity sales expense were $
The Bank is headquartered in Helena, Montana, and has additional branches in Ashland, Big Timber, Billings, Bozeman, Butte, Choteau, Culbertson, Denton, Dutton, Froid, Glasgow, Great Falls, Hamilton, Hinsdale, Livingston, Missoula, Sheridan, Three Forks, Townsend, Twin Bridges, Winifred and Wolf Point, Montana. The Bank currently has
Basis of Financial Statement Presentation and Use of Estimates
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the Company’s Annual Report on Form 10-K with all of the audited information and footnotes required by U.S. GAAP for complete financial statements for the year ended December 31, 2025, as filed with the SEC on March 9, 2026. In the opinion of management, all normal adjustments and recurring accruals considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included.
The results of operations for the nine-month period ended September 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or any other period. In preparing condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated statement of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses ("ACL"), mortgage servicing rights, the fair value of financial instruments, the valuation of goodwill and deferred tax assets and liabilities.
Principles of Consolidation
The condensed consolidated financial statements include Eagle, the Bank, OHF, Eagle Bancorp Statutory Trust I (the “Trust”) and OFS. All significant intercompany transactions and balances have been eliminated in consolidation.
Subsequent Events
The Company has evaluated events and transactions subsequent to September 30, 2026 for recognition and/or disclosure.
Goodwill
Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company tests goodwill for impairment annually as of October 31, or more often if events or circumstances, such as adverse changes in the business climate indicate there may be impairment. A goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value. An impairment charge is recorded for the amount by which the carrying amount exceeds the reporting unit’s fair value. For goodwill considerations the Company is a single reporting unit.
Our quantitative impairment test is performed annually as of October 31. The annual goodwill impairment test as of October 31, 2025 did result in impairment. The annual goodwill impairment test for 2026 will be completed during the three months ended December 31, 2026.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Segment Reporting
Management considers operations to be aggregated in operating segment, as well as
The CODM is responsible for assessing performance and allocating operating and capital expenditure resources. The CODM regularly assesses the performance of the single operating and reporting segment based on consolidated net income. The CODM reviews expenses at a level consistent with those reported in the Company’s consolidated statements of income. All significant expense categories are reflected in the consolidated statements of income. The measure of segment assets is reflected in the consolidated statements of financial condition as total assets.
Recently Adopted Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The updated accounting guidance requires enhanced income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis, but retrospective application is permitted. The amendments in this ASU became effective for the Company on January 1, 2025 and did not have a significant impact on the Company’s financial position, results of operations, or liquidity.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires that public companies disclose details about specific expenses, among other things, such as employee compensation, depreciation, amortization, depletion, and inventory purchases. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date identified under ASU No. 2024-03. The Company is currently evaluating the effect the ASU will have on its consolidated financial statements and related disclosures.
In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which amends the accounting for acquired loans by introducing a category of purchased seasoned loans and expanding the use of the gross-up approach, requiring qualifying acquired loans to be recorded at purchase price plus an allowance for expected credit losses rather than recognizing a Day-1 provision through earnings. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, and is to be applied prospectively, with early adoption permitted. The Company has concluded that the impact of adoption will not be material as the standard is adopted prospectively.
NOTE 2. INVESTMENT SECURITIES
The amortized cost and fair values of securities, together with unrealized gains and losses, were as follows:
| September 30, 2026 | ||||||||||||||||||||
| Gross | Gross | |||||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
| Cost | Gains | Losses | ACL | Value | ||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
| U.S. treasury obligations | ( | ) | ||||||||||||||||||
| Municipal obligations | ( | ) | ||||||||||||||||||
| Corporate obligations | ( | ) | ||||||||||||||||||
| Mortgage-backed securities | ( | ) | ||||||||||||||||||
| Collateralized mortgage obligations | ( | ) | ||||||||||||||||||
| Asset-backed securities | ||||||||||||||||||||
| Total | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 2. INVESTMENT SECURITIES– continued
| December 31, 2025 | ||||||||||||||||||||
| Gross | Gross | |||||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
| Cost | Gains | Losses | ACL | Value | ||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
| U.S. treasury obligations | ( | ) | ||||||||||||||||||
| Municipal obligations | ( | ) | ||||||||||||||||||
| Corporate obligations | ( | ) | ||||||||||||||||||
| Mortgage-backed securities | ( | ) | ||||||||||||||||||
| Collateralized mortgage obligations | ( | ) | ||||||||||||||||||
| Asset-backed securities | ( | ) | ||||||||||||||||||
| Total | $ | $ | $ | ( | ) | $ | $ | |||||||||||||
There was
The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| September 30, 2026 | ||||||||
| Amortized | Fair | |||||||
| Cost | Value | |||||||
| (In Thousands) | ||||||||
| Due in one year or less | $ | $ | ||||||
| Due from one to five years | ||||||||
| Due from five to ten years | ||||||||
| Due after ten years | ||||||||
| Mortgage-backed securities | ||||||||
| Collateralized mortgage obligations | ||||||||
| Total | $ | $ | ||||||
As of September 30, 2026 and December 31, 2025, securities with a fair value of $
The Company’s investment securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve or more months were as follows:
| September 30, 2026 | ||||||||||||||||
| Less than 12 Months | 12 Months or Longer | |||||||||||||||
| Gross | Gross | |||||||||||||||
| Fair | Unrealized | Fair | Unrealized | |||||||||||||
| Value | Losses | Value | Losses | |||||||||||||
| (In Thousands) | ||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ( | ) | ||||||||||
| U.S. treasury obligations | ( | ) | ||||||||||||||
| Municipal obligations | ( | ) | ( | ) | ||||||||||||
| Corporate obligations | ( | ) | ||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ) | ( | ) | ||||||||||||
| Asset-backed securities | ||||||||||||||||
| Total | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 2. INVESTMENT SECURITIES– continued
| December 31, 2025 | ||||||||||||||||
| Less than 12 months | 12 months or Longer | |||||||||||||||
| Gross | Gross | |||||||||||||||
| Fair | Unrealized | Fair | Unrealized | |||||||||||||
| Value | Losses | Value | Losses | |||||||||||||
| (In Thousands) | ||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ( | ) | ||||||||||
| U.S. treasury obligations | ( | ) | ||||||||||||||
| Municipal obligations | ( | ) | ( | ) | ||||||||||||
| Corporate obligations | ( | ) | ||||||||||||||
| Mortgage-backed securities and collateralized mortgage obligations | ( | ) | ( | ) | ||||||||||||
| Asset-backed securities | ( | ) | ||||||||||||||
| Total | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
As of September 30, 2026 and December 31, 2025,
NOTE 3. LOANS RECEIVABLE
Loans receivable consisted of the following:
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (In Thousands) | ||||||||
| Real estate loans: | ||||||||
| Residential 1-4 family | $ | $ | ||||||
| Commercial real estate | ||||||||
| Other loans: | ||||||||
| Home equity | ||||||||
| Consumer | ||||||||
| Commercial | ||||||||
| Total loans | ||||||||
| Allowance for credit losses | ( | ) | ( | ) | ||||
| Total loans, net | $ | $ | ||||||
| Deferred fees, net included in total loans | $ | ( | ) | $ | ( | ) | ||
Guaranteed loans by U.S. government agencies totaling $
The following table provides allowance for credit losses activity for the three months ended September 30, 2026.
| Residential | Commercial | Home | ||||||||||||||||||||||
| 1-4 Family | Real Estate | Equity | Consumer | Commercial | Total | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
| Allowance for credit losses on loans: | ||||||||||||||||||||||||
| Beginning balance, July 1, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ||||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||
| Provision | ||||||||||||||||||||||||
| Total ending allowance balance, September 30, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 3. LOANS RECEIVABLE – continued
The following table provides allowance for credit losses activity for the nine months ended September 30, 2026.
| Residential | Commercial | Home | ||||||||||||||||||||||
| 1-4 Family | Real Estate | Equity | Consumer | Commercial | Total | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
| Allowance for credit losses on loans: | ||||||||||||||||||||||||
| Beginning balance, January 1, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||
| (Recapture) provision | ( | ) | ||||||||||||||||||||||
| Total ending allowance balance, September 30, 2026 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
The following table provides allowance for credit losses activity for the three months ended September 30, 2025.
| Residential | Commercial | Home | ||||||||||||||||||||||
| 1-4 Family | Real Estate | Equity | Consumer | Commercial | Total | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
| Allowance for credit losses on loans: | ||||||||||||||||||||||||
| Beginning balance, July 1, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
| Recoveries | ||||||||||||||||||||||||
| Provision | ||||||||||||||||||||||||
| Total ending allowance balance, September 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
The following table provides allowance for credit losses activity for the nine months ended September 30, 2025.
| Residential | Commercial | Home | ||||||||||||||||||||||
| 1-4 Family | Real Estate | Equity | Consumer | Commercial | Total | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
| Allowance for credit losses on loans: | ||||||||||||||||||||||||
| Beginning balance, January 1, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Charge-offs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
| Recoveries | ||||||||||||||||||||||||
| Provision | ||||||||||||||||||||||||
| Total ending allowance balance, September 30, 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
NOTE 3. LOANS RECEIVABLE – continued
Internal classification of the loan portfolio by amortized cost and based on year originated was as follows:
| September 30, 2026 | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Revolving Loans | Total Loans | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| RESIDENTIAL 1-4 FAMILY | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Residential 1-4 family | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| RESIDENTIAL 1-4 FAMILY CONSTRUCTION | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Total Residential 1-4 family construction | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL REAL ESTATE | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Commercial real estate | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL CONSTRUCTION AND DEVELOPMENT | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Commercial construction and development | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| FARMLAND | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Farmland | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| HOME EQUITY | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Home Equity | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| CONSUMER | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Consumer | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total Commercial | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| AGRICULTURAL | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Agricultural | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| TOTAL LOANS | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Doubtful | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 3. LOANS RECEIVABLE – continued
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans | Total Loans | |||||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||||||
| RESIDENTIAL 1-4 FAMILY | ||||||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Residential 1-4 family | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| RESIDENTIAL 1-4 FAMILY CONSTRUCTION | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Total Residential 1-4 family construction | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL REAL ESTATE | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Commercial real estate | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL CONSTRUCTION AND DEVELOPMENT | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Commercial construction and development | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| FARMLAND | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Farmland | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| HOME EQUITY | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Home Equity | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| CONSUMER | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Consumer | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| COMMERCIAL | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Commercial | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| AGRICULTURAL | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total Agricultural | ||||||||||||||||||||||||||||||||
| Current-period gross charge-offs | ||||||||||||||||||||||||||||||||
| TOTAL LOANS | ||||||||||||||||||||||||||||||||
| Pass | ||||||||||||||||||||||||||||||||
| Special Mention | ||||||||||||||||||||||||||||||||
| Substandard | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 3. LOANS RECEIVABLE – continued
The following tables include information regarding delinquencies within the loan portfolio.
| September 30, 2026 | ||||||||||||||||||||||||||||
| Loans Past Due and Still Accruing | ||||||||||||||||||||||||||||
| 90 Days | Nonaccrual | Nonaccrual | ||||||||||||||||||||||||||
| 30-89 Days | and | Loans with | Loans with | Current | Total | |||||||||||||||||||||||
| Past Due | Greater | Total | no ACL | ACL | Loans | Loans | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||||||
| Residential 1-4 family | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Residential 1-4 family construction | ||||||||||||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||||
| Commercial construction and development | ||||||||||||||||||||||||||||
| Farmland | ||||||||||||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||||||
| Home equity | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||
| Loans Past Due and Still Accruing | ||||||||||||||||||||||||||||
| 90 Days | Nonaccrual | Nonaccrual | ||||||||||||||||||||||||||
| 30-89 Days | and | Loans with | Loans with | Current | Total | |||||||||||||||||||||||
| Past Due | Greater | Total | no ACL | ACL | Loans | Loans | ||||||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||||||
| Residential 1-4 family | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
| Residential 1-4 family construction | ||||||||||||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||||||
| Commercial construction and development | ||||||||||||||||||||||||||||
| Farmland | ||||||||||||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||||||
| Home equity | ||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Interest income recognized on nonaccrual loans for the three and nine months ended September 30, 2026 and 2025 is considered insignificant. Nonaccrual loan interest payments received and applied to principal were $
The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type.
| September 30, 2026 | ||||||||||||
| Real Estate | Business Assets | Other | ||||||||||
| (In Thousands) | ||||||||||||
| Real estate loans: | ||||||||||||
| Residential 1-4 family | $ | $ | $ | |||||||||
| Commercial real estate | ||||||||||||
| Commercial construction and development | ||||||||||||
| Farmland | ||||||||||||
| Other loans: | ||||||||||||
| Home equity | ||||||||||||
| Consumer | ||||||||||||
| Commercial | ||||||||||||
| Agricultural | ||||||||||||
| Total | $ | $ | $ | |||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 3. LOANS RECEIVABLE – continued
| December 31, 2025 | ||||||||||||
| Real Estate | Business Assets | Other | ||||||||||
| (In Thousands) | ||||||||||||
| Real estate loans: | ||||||||||||
| Residential 1-4 family | $ | $ | $ | |||||||||
| Commercial real estate | ||||||||||||
| Commercial construction and development | ||||||||||||
| Farmland | ||||||||||||
| Other loans: | ||||||||||||
| Home equity | ||||||||||||
| Consumer | ||||||||||||
| Commercial | ||||||||||||
| Agricultural | ||||||||||||
| Total | $ | $ | $ | |||||||||
The Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, term extensions, other than insignificant payment delays, or any combination of these.
The following tables include the amortized cost basis at the period end for the loans modified to borrowers experiencing financial difficulty.
| As of or For the | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | ||||||||||||||||||||||||
| Term Extension and Payment Deferral | Term Extension and Interest Rate Reduction | |||||||||||||||||||||||
| Amortized Cost Basis | Percent of Loan Category | Amortized Cost Basis | Percent of Loan Category | Total Amortized Cost Basis | Total Number of Loans | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||
| Farmland | $ | % | $ | % | $ | |||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||||||
| As of or For the | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||
| Term Extension and Payment Deferral | Term Extension and Interest Rate Reduction | |||||||||||||||||||||||
| Amortized Cost Basis | Percent of Loan Category | Amortized Cost Basis | Percent of Loan Category | Total Amortized Cost Basis | Total Number of Loans | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||
| Home equity | $ | % | $ | % | $ | |||||||||||||||||||
| Commercial | ||||||||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||||||
| As of or For the | ||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | ||||||||||||||||||||||||
| Term Extension and Payment Deferral | Term Extension and Interest Rate Reduction | |||||||||||||||||||||||
| Amortized Cost Basis | Percent of Loan Category | Amortized Cost Basis | Percent of Loan Category | Total Amortized Cost Basis | Total Number of Loans | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||
| Farmland | $ | % | $ | % | $ | |||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| As of or For the | ||||||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2025 | ||||||||||||||||||||||||
| Term Extension and Payment Deferral | Term Extension and Interest Rate Reduction | |||||||||||||||||||||||
| Amortized Cost Basis | Percent of Loan Category | Amortized Cost Basis | Percent of Loan Category | Total Amortized Cost Basis | Total Number of Loans | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||||||
| Residential 1-4 family | $ | % | $ | % | $ | |||||||||||||||||||
| Commercial real estate | ||||||||||||||||||||||||
| Other loans: | ||||||||||||||||||||||||
| Home equity | ||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||
| Agricultural | ||||||||||||||||||||||||
| Total | $ | $ | $ | |||||||||||||||||||||
During the three and nine months ended September 30, 2026 and 2025, no loans modified for borrowers experiencing financial difficulty within the previous twelve months experienced a payment default.
NOTE 4. MORTGAGE SERVICING RIGHTS
The Company is servicing mortgage loans for the benefit of others which are not included in the condensed consolidated statements of financial condition and have unpaid principal balances of $
Custodial balances maintained in connection with the foregoing loan servicing are included in noninterest checking deposits and were $
The following is a summary of activity in mortgage servicing rights:
| As of or For the | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| (In Thousands) | ||||||||
| Mortgage servicing rights: | ||||||||
| Beginning balance | $ | $ | ||||||
| Mortgage servicing rights capitalized | ||||||||
| Amortization of mortgage servicing rights | ( | ) | ( | ) | ||||
| Mortgage servicing rights, net | $ | $ | ||||||
| As of or For the | ||||||||
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| (In Thousands) | ||||||||
| Mortgage servicing rights: | ||||||||
| Beginning balance | $ | $ | ||||||
| Mortgage servicing rights capitalized | ||||||||
| Amortization of mortgage servicing rights | ( | ) | ( | ) | ||||
| Mortgage servicing rights, net | $ | $ | ||||||
The fair values of these mortgage servicing rights were $
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Key assumptions: | ||||||||
| Discount rate | % | % | ||||||
| Prepayment speed range | % | % | ||||||
| Weighted average prepayment speed | % | % | ||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 5. DEPOSITS
Deposits are summarized as follows:
| September 30, |
December 31, |
|||||||
| 2026 |
2025 |
|||||||
| (In Thousands) |
||||||||
| Noninterest checking |
$ | $ | ||||||
| Interest-bearing checking |
||||||||
| Savings |
||||||||
| Money market |
||||||||
| Time certificates of deposit |
||||||||
| Total |
$ | $ | ||||||
As of September 30, 2026, the Bank had
NOTE 6. OTHER LONG-TERM DEBT
Other long-term debt consisted of the following:
| September 30, 2026 | December 31, 2025 | |||||||||||||||
| Unamortized | Unamortized | |||||||||||||||
| Debt | Debt | |||||||||||||||
| Principal | Issuance | Principal | Issuance | |||||||||||||
| Amount | Costs | Amount | Costs | |||||||||||||
| (In Thousands) | ||||||||||||||||
| Subordinated debentures fixed at % to floating, due | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| Subordinated debentures variable at 3-Month plus %, due | ||||||||||||||||
| Total other long-term debt | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
In January 2022, the Company completed the issuance of $
In June 2020, the Company completed the issuance of $
In September 2005, the Company completed the private placement of $
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 7. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table includes information regarding the activity in accumulated other comprehensive income (loss).
| Unrealized | ||||
| (Losses) Gains | ||||
| on Securities | ||||
| Available for Sale | ||||
| (In Thousands) | ||||
| Balance at July 1, 2026 | $ | ( | ) | |
| Other comprehensive loss, before reclassifications and income taxes | ( | ) | ||
| Amounts reclassified from accumulated other comprehensive loss, before income taxes | ||||
| Income tax benefit | ||||
| Total other comprehensive loss | ( | ) | ||
| Balance at September 30, 2026 | $ | ( | ) | |
| Balance at July 1, 2025 | $ | ( | ) | |
| Other comprehensive income, before reclassifications and income taxes | ||||
| Amounts reclassified from accumulated other comprehensive loss, before income taxes | ||||
| Income tax provision | ( | ) | ||
| Total other comprehensive income | ||||
| Balance at September 30, 2025 | $ | ( | ) | |
| Balance at January 1, 2026 | $ | ( | ) | |
| Other comprehensive loss, before reclassifications and income taxes | ( | ) | ||
| Amounts reclassified from accumulated other comprehensive loss, before income taxes | ||||
| Income tax benefit | ||||
| Total other comprehensive loss | ( | ) | ||
| Balance at September 30, 2026 | $ | ( | ) | |
| Balance at January 1, 2025 | $ | ( | ) | |
| Other comprehensive income, before reclassifications and income taxes | ||||
| Amounts reclassified from accumulated other comprehensive loss, before income taxes | ||||
| Income tax provision | ( | ) | ||
| Total other comprehensive income | ||||
| Balance at September 30, 2025 | $ | ( | ) | |
NOTE 8. EARNINGS PER COMMON SHARE
The computations of basic and diluted earnings per common share are as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Dollars in Thousands, | ||||||||||||||||
| Except for Share Data) | ||||||||||||||||
| Basic weighted average shares outstanding | ||||||||||||||||
| Dilutive effect of stock compensation | ||||||||||||||||
| Diluted weighted average shares outstanding | ||||||||||||||||
| Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||
| Basic earnings per common share | $ | $ | $ | $ | ||||||||||||
| Diluted earnings per common share | $ | $ | $ | $ | ||||||||||||
| Restricted stock units excluded from the diluted average outstanding share calculation because their effect would be anti-dilutive | ||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 9. DERIVATIVES AND HEDGING ACTIVITIES
The Company enters into commitments to originate and sell mortgage loans. The Bank uses derivatives to hedge the risk of changes in fair values of interest rate lock commitments and mortgage loans held-for-sale. An optimal amount of mortgage loans are sold directly into bulk commitments with investors at the time an interest rate is locked, other loans are sold on an individual best-efforts basis at the time an interest rate is locked, and the remaining balance of locked loans are hedged using To-Be-Announced (“TBA”) mortgage-backed securities or bulk mandatory forward loan sale commitments.
Derivatives are accounted for as free-standing or economic derivatives and are measured at fair value. Derivatives are recorded as either other assets or other liabilities on the condensed consolidated statements of condition.
Derivatives are summarized as follows:
| September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||
| Notional | Fair Value | Notional | Fair Value | |||||||||||||||||||||
| Amount | Asset | Liability | Amount | Asset | Liability | |||||||||||||||||||
| (In Thousands) | ||||||||||||||||||||||||
| Interest rate lock commitments | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Forward TBA mortgage-backed securities | ||||||||||||||||||||||||
Changes in the fair value of the derivatives are recorded in mortgage banking, net, within noninterest income on the condensed consolidated statements of income. Net gains of $
NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
Assets and liabilities that are measured at fair value are grouped in three levels within the fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
The fair value hierarchy is as follows:
| ■ | Level 1 Inputs – Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. |
| ■ | Level 2 Inputs – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. |
| ■ | Level 3 Inputs – Valuations are based on unobservable inputs that may include significant management judgment and estimation. |
A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy at the reporting date, is set forth below.
Available-for-Sale Securities – Securities classified as available-for-sale are reported at fair value utilizing Level 1 (nationally recognized securities exchanges) and Level 2 inputs. For Level 2 inputs securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include but is not limited to dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond’s terms and conditions.
Loans Held-for-Sale – These loans are reported at fair value. Fair value is determined based on expected proceeds based on committed sales contracts and commitments of similar loans if not already committed and are considered Level 2 inputs.
Derivative Instruments – The fair value of the interest rate lock commitments, forward TBA mortgage-backed securities and mandatory forward commitments are estimated using quoted or published market prices for similar instruments and adjusted for factors, such as pull-through rate assumptions based on historical information, where appropriate. Interest rate lock commitments are considered Level 3 inputs and forward TBA mortgage-backed securities and mandatory forward commitments are considered Level 2 inputs.
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued
Collateral-Dependent Loans – Individually evaluated collateral-dependent loans are reported at the lower of the loan's amortized cost or the fair value of the underlying collateral, less estimated costs to sell. Collateral-dependent loans are considered Level 3 inputs of the fair value hierarchy. Collateral values are estimated using values determined in loan underwriting and discounted based on internally customized discounting criteria.
Other Real Estate and Other Repossessed Assets – Fair values are determined at the time the loan is foreclosed upon and the asset is transferred from loans. The value is based primarily on third-party appraisals, less costs to sell and are considered Level 3 inputs of the fair value hierarchy. Repossessed assets are reviewed and evaluated periodically for additional impairment and adjusted accordingly.
Mortgage Servicing Rights – The fair value of mortgage servicing rights are estimated using net present value of expected cash flows based on a third party model that incorporates industry assumptions and is adjusted for factors such as prepayment speeds and are considered Level 3 inputs.
The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.
| September 30, 2026 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||
| Inputs | Inputs | Inputs | Value | |||||||||||||
| (In Thousands) | ||||||||||||||||
| Financial assets: | ||||||||||||||||
| Available-for-sale securities: | ||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ||||||||||||
| U.S. treasury obligations | ||||||||||||||||
| Municipal obligations | ||||||||||||||||
| Corporate obligations | ||||||||||||||||
| Mortgage-backed securities | ||||||||||||||||
| Collateralized mortgage obligations | ||||||||||||||||
| Asset-backed securities | ||||||||||||||||
| Loans held-for-sale | ||||||||||||||||
| Forward TBA mortgage-backed securities | ||||||||||||||||
| Financial liabilities: | ||||||||||||||||
| Interest rate lock commitments | ||||||||||||||||
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||
| Inputs | Inputs | Inputs | Value | |||||||||||||
| (In Thousands) | ||||||||||||||||
| Financial assets: | ||||||||||||||||
| Available-for-sale securities: | ||||||||||||||||
| U.S. government and agency obligations | $ | $ | $ | $ | ||||||||||||
| U.S. treasury obligations | ||||||||||||||||
| Municipal obligations | ||||||||||||||||
| Corporate obligations | ||||||||||||||||
| Mortgage-backed securities | ||||||||||||||||
| Collateralized mortgage obligations | ||||||||||||||||
| Asset-backed securities | ||||||||||||||||
| Loans held-for-sale | ||||||||||||||||
| Financial liabilities: | ||||||||||||||||
| Forward TBA mortgage-backed securities | ||||||||||||||||
| Interest rate lock commitments | ||||||||||||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued
Certain financial assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of lower of cost or fair value accounting or write-downs of individual assets, such as impaired loans that are collateral-dependent, real estate and other repossessed assets and mortgage servicing rights.
The following tables summarize financial assets measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting periods presented:
| September 30, 2026 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||
| Inputs | Inputs | Inputs | Value | |||||||||||||
| (In Thousands) | ||||||||||||||||
| Collateral-dependent loans individually evaluated, net of ACL | $ | $ | $ | $ | ||||||||||||
| Other real estate owned and other repossessed assets | $ | $ | $ | $ | ||||||||||||
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||
| Inputs | Inputs | Inputs | Value | |||||||||||||
| (In Thousands) | ||||||||||||||||
| Collateral-dependent loans individually evaluated, net of ACL | $ | $ | $ | $ | ||||||||||||
The following table represents the Bank's financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the valuation techniques used to measure the fair value of those assets and liabilities, and the significant unobservable inputs and the ranges of values for those inputs.
| Principal | Significant | Range of | ||||||
| Valuation | Unobservable | Significant Input | ||||||
| Instrument | Technique | Inputs | Values | |||||
| Collateral-dependent loans individually evaluated | Fair value of underlying collateral | Discount applied to the obtained appraisal | | |||||
| Real estate and other repossessed assets | Fair value of collateral | Discount applied to the obtained appraisal | | |||||
| Interest rate lock commitments | Internal pricing model | Pull-through expectations | | |||||
The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable Level 3 inputs on a recurring basis.
| As of or For the | As of or For the | |||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Interest Rate Lock Commitments | Interest Rate Lock Commitments | |||||||||||||||
| (In Thousands) | (In Thousands) | |||||||||||||||
| Beginning balance | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
| Purchases and issuances | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Sales and settlements | ||||||||||||||||
| Ending balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Unrealized (losses) gains related to items held during the period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued
The tables below summarize the estimated fair values of financial instruments of the Company, whether or not recognized at fair value on the condensed consolidated statements of condition.
| September 30, 2026 | ||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Carrying | ||||||||||||||||
| Inputs | Inputs | Inputs | Fair Value | Amount | ||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
| FHLB stock | ||||||||||||||||||||
| FRB stock | ||||||||||||||||||||
| Loans receivable, gross | ||||||||||||||||||||
| Mortgage servicing rights | ||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||
| Time certificates of deposit | ||||||||||||||||||||
| FHLB advances and other borrowings | ||||||||||||||||||||
| Other long-term debt | ||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Carrying | ||||||||||||||||
| Inputs | Inputs | Inputs | Fair Value | Amount | ||||||||||||||||
| (In Thousands) | ||||||||||||||||||||
| Financial assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||
| FHLB stock | ||||||||||||||||||||
| FRB stock | ||||||||||||||||||||
| Loans receivable, gross | ||||||||||||||||||||
| Mortgage servicing rights | ||||||||||||||||||||
| Financial liabilities: | ||||||||||||||||||||
| Time certificates of deposit | ||||||||||||||||||||
| Federal Funds Purchased | ||||||||||||||||||||
| FHLB advances and other borrowings | ||||||||||||||||||||
| Other long-term debt | ||||||||||||||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Introduction
Eagle Bancorp Montana, Inc. is a bank holding company registered under the Bank Holding Company Act, is incorporated under the laws of Delaware and headquartered in Helena, Montana. Its wholly-owned subsidiary, Opportunity Bank of Montana (the "Bank"), is a Montana-state-chartered bank that is a member of the Federal Reserve System.
This discussion and analysis provides information that management believes is necessary to understand Eagle's financial condition, changes in financial condition, results of operations, and cash flows for the three and nine months ended September 30, 2026, as compared to the same period of 2025. The following should be read in conjunction with the Company's Consolidated Financial Statements, and accompanying Notes thereto, for the year ended December 31, 2025, included in Eagle's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on March 9, 2026, and in conjunction with the Condensed Consolidated Financial Statements, and accompanying Notes thereto, included in Part I - Item 1. Financial Statements of this report. The results of operations for the three and nine months ended September 30, 2026, are not necessarily indicative of the future results that may be attained for the entire year or other interim periods.
Executive Summary
The Company’s primary business activity is the ownership of the Bank. The Bank focuses on consumer, commercial, and agricultural lending. It engages in typical banking activities: acquiring deposits from local markets and originating loans and investing in securities. Our earnings depend primarily on our level of net interest income, which is the difference between interest earned on our interest-earning assets, consisting primarily of loans and investment securities, and the interest paid on interest-bearing liabilities, consisting primarily of deposits, borrowed funds, and trust-preferred securities. Net interest income is a function of our interest rate spread, which is the difference between the average yield earned on our interest-earning assets and the average rate paid on our interest-bearing liabilities, as well as a function of the average balance of interest-earning assets compared to interest-bearing liabilities. Also contributing to our earnings is noninterest income, which consists primarily of service charges and fees on loan and deposit products and services, net gains and losses on sale of assets, and mortgage loan service fees. Net interest income and noninterest income are offset by provisions for credit losses, general administrative and other expenses, including salaries and employee benefits and occupancy and equipment costs, as well as by state and federal income tax expense.
The Bank has focused on diversifying the loan portfolio over the past decade, adding commercial and agricultural loans to the strong mortgage lending proficiency. Loan originations represented by single-family residential mortgages enabled the Bank to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.). The Bank has grown the commercial loan portfolio in both real estate and non-real estate, and further added through acquisitions agricultural loans, which have a shorter term and slightly higher interest rate. The purpose of diversification is to mitigate the Bank’s exposure to specific market segments, as well as to improve our ability to manage our interest rate spread. This has provided additional interest income and improved interest rate sensitivity. The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it maintains a significant loan serviced portfolio which provides a steady source of fee income. Fee income is also supplemented with fees generated from deposit accounts. The Bank has a high percentage of non-maturity deposits, such as checking accounts and savings accounts, which allows management flexibility in managing its spread. Non-maturity deposits and certificates of deposits do not automatically reprice as interest rates rise. Gain on sale of loans also provides significant noninterest income in periods of high mortgage loan origination volumes. Such income will be, and has recently been, adversely affected in periods of lower mortgage activity.
Management continues to focus on improving the Bank’s earnings. Management believes the Bank needs to continue to concentrate on increasing net interest margin, other areas of fee income and control of operating expenses to achieve earnings growth going forward. Management’s strategy of growing the loan portfolio and deposit base is expected to help achieve these goals as follows: loans typically earn higher rates of return than investments; a larger deposit base should yield higher fee income; increasing the asset base will reduce the relative impact of fixed operating costs. The biggest challenge to this strategy is funding growth in an efficient manner. It may become more difficult to maintain deposit growth due to significant competition, the current conditions in the banking industry and possible reduced customer demand for deposits.
The level and movement of interest rates impacts the Bank’s earnings as well. The Federal Open Market Committee decreased the federal funds target rate to 3.75% during the year ended December 31, 2025. The rate was increased to 4.00% during the nine months ended September 30, 2026.
Financial Condition
Comparisons of financial condition in this section are between September 30, 2026 and December 31, 2025.
Total assets were $2.28 billion at September 30, 2026, an increase of $175.66 million, or 8.3%, from $2.11 billion at December 31, 2025. Loans receivable, net increased by $196.24 million, or 13.1%, from December 31, 2025. Securities available-for-sale decreased $8.87 million, or 3.1%, from December 31, 2025. Total liabilities were $2.09 billion at September 30, 2026, an increase of $175.35 million, or 9.2%, from $1.91 billion at December 31, 2025. The increase was largely due to an increase in FHLB advances. Total borrowings increased $158.83 million from December 31, 2025 and total deposits increased $20.50 million from December 31, 2025. Total shareholders’ equity increased $315,000 from December 31, 2025.
Financial Condition – continued
Financial Condition Details
Investment Activities
The following table summarizes investment activities:
| September 30, |
December 31, |
|||||||||||||||
| 2026 |
2025 |
|||||||||||||||
| Fair Value |
Percent of Total |
Fair Value |
Percent of Total |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| Securities available-for-sale: |
||||||||||||||||
| U.S. government and agency obligations |
$ | 3,662 | 1.34 | % | $ | 4,155 | 1.48 | % | ||||||||
| U.S. treasury obligations |
43,472 | 15.93 | 44,308 | 15.73 | ||||||||||||
| Municipal obligations |
117,639 | 43.12 | 118,324 | 41.99 | ||||||||||||
| Corporate obligations |
983 | 0.36 | 1,971 | 0.70 | ||||||||||||
| Mortgage-backed securities |
23,939 | 8.78 | 26,494 | 9.41 | ||||||||||||
| Collateralized mortgage obligations |
76,990 | 28.22 | 79,661 | 28.28 | ||||||||||||
| Asset-backed securities |
6,139 | 2.25 | 6,779 | 2.41 | ||||||||||||
| Total securities available-for-sale |
$ | 272,824 | 100.00 | % | $ | 281,692 | 100.00 | % | ||||||||
Securities available-for-sale were $272.82 million at September 30, 2026, a decrease of $8.87 million, or 3.1%, from $281.69 million at December 31, 2025. The decrease was primarily due to maturities, principal payments, and call activity of $12.79 million and a decrease in fair value of $10.70 million. This was partially offset by purchasing activity of $15.19 million.
Lending Activities
The following table includes the composition of the Bank’s loan portfolio by loan category:
| September 30, |
December 31, |
|||||||||||||||
| 2026 |
2025 |
|||||||||||||||
| Amount |
Percent of Total |
Amount |
Percent of Total |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| Real estate loans: |
||||||||||||||||
| Residential 1-4 family (1) |
$ | 141,025 | 8.21 | % | $ | 148,515 | 9.78 | % | ||||||||
| Residential 1-4 family construction |
58,201 | 3.39 | 35,278 | 2.32 | ||||||||||||
| Total residential 1-4 family |
199,226 | 11.60 | 183,793 | 12.10 | ||||||||||||
| Commercial real estate |
784,706 | 45.69 | 635,970 | 41.87 | ||||||||||||
| Commercial construction and development |
104,558 | 6.09 | 120,289 | 7.92 | ||||||||||||
| Farmland |
172,210 | 10.03 | 162,580 | 10.70 | ||||||||||||
| Total commercial real estate |
1,061,474 | 61.81 | 918,839 | 60.49 | ||||||||||||
| Total real estate loans |
1,260,700 | 73.41 | 1,102,632 | 72.59 | ||||||||||||
| Other loans: |
||||||||||||||||
| Home equity |
115,937 | 6.75 | 108,073 | 7.11 | ||||||||||||
| Consumer |
21,096 | 1.23 | 24,424 | 1.61 | ||||||||||||
| Commercial |
175,001 | 10.19 | 149,431 | 9.84 | ||||||||||||
| Agricultural |
144,644 | 8.42 | 134,459 | 8.85 | ||||||||||||
| Total commercial loans |
319,645 | 18.61 | 283,890 | 18.69 | ||||||||||||
| Total other loans |
456,678 | 26.59 | 416,387 | 27.41 | ||||||||||||
| Total loans |
1,717,378 | 100.00 | % | 1,519,019 | 100.00 | % | ||||||||||
| Allowance for credit losses |
(19,490 | ) | (17,370 | ) | ||||||||||||
| Total loans, net |
$ | 1,697,888 | $ | 1,501,649 | ||||||||||||
| Deferred fees, net included in total loans | $ | (3,487 | ) | $ | (3,619 | ) | ||||||||||
|
|
(1) |
Excludes loans held-for-sale. |
Financial Condition – continued
Lending Activities– continued
Total loans increased $198.36 million to $1.72 billion at September 30, 2026 from $1.52 billion at December 31, 2025. The increase was attributable to increases in total commercial real estate loans of $142.63 million, total commercial loans of $35.76 million, total residential loans of $15.44 million, and home equity loans of $7.86 million. The increases were partially offset by a decrease of $3.33 million in consumer loans.
Total loan originations were $721.99 million for the nine months ended September 30, 2026. Total residential 1-4 family originations were $293.87 million, which included $219.22 million of loans held-for-sale originations. Total commercial real estate originations were $215.42 million. Total commercial originations were $173.64 million. Home equity loan originations totaled $31.25 million. Consumer loan originations totaled $7.81 million. Loans held-for-sale increased by $5.36 million to $12.81 million at September 30, 2026 from $7.45 million at December 31, 2025.
Generally, our collection procedures provide that when a loan is 15 or more days delinquent, the borrower is sent a past due notice. If the loan becomes 30 days delinquent, the borrower is sent a written delinquency notice requiring payment. If the delinquency continues, subsequent efforts are made to contact the delinquent borrower, including face to face meetings and counseling to resolve the delinquency. All collection actions are undertaken with the objective of compliance with the relevant state and federal banking laws, including the Fair Debt Collection Act.
For mortgage loans and home equity loans, if the borrower is unable to cure the delinquency or reach a payment agreement, we will institute foreclosure actions. If a foreclosure action is taken and the loan is not reinstated, paid in full or refinanced, the property is sold at judicial sale at which we may be the buyer if there are no adequate offers to satisfy the debt. Any property acquired as the result of foreclosure, or by deed in lieu of foreclosure, is classified as real estate owned until such time as it is sold or otherwise disposed of. When real estate owned is acquired, it is recorded at its fair market value less estimated selling costs. The initial recording of any loss is charged to the allowance for credit losses. Subsequent write-downs are recorded as a charge to operations. As of September 30, 2026 and December 31, 2025 there was $43,000 and $98,000, respectively, of real estate owned and other repossessed property.
The following table sets forth information regarding nonperforming assets:
| September 30, |
December 31, |
|||||||
| 2026 |
2025 |
|||||||
| (Dollars in Thousands) |
||||||||
| Non-accrual loans |
||||||||
| Real estate loans: |
||||||||
| Residential 1-4 family |
$ | 274 | $ | 298 | ||||
| Commercial real estate |
420 | 420 | ||||||
| Commercial construction and development |
1 | 1 | ||||||
| Farmland |
4,420 | 308 | ||||||
| Other loans: |
||||||||
| Home equity |
303 | 395 | ||||||
| Consumer |
70 | 210 | ||||||
| Commercial |
286 | 279 | ||||||
| Agricultural |
992 | 177 | ||||||
| Accruing loans delinquent 90 days or more |
||||||||
| Real estate loans: |
||||||||
| Residential 1-4 family |
325 | 48 | ||||||
| Farmland |
992 | 841 | ||||||
| Other loans: |
||||||||
| Consumer |
14 | - | ||||||
| Commercial |
- | 10 | ||||||
| Agricultural |
606 | 2,645 | ||||||
| Total nonperforming loans |
8,703 | 5,632 | ||||||
| Real estate owned and other repossessed property, net |
43 | 98 | ||||||
| Total nonperforming assets |
$ | 8,746 | $ | 5,730 | ||||
| Total nonperforming loans to total loans |
0.51 | % | 0.37 | % | ||||
| Total nonperforming loans to total assets |
0.38 | % | 0.27 | % | ||||
| Total nonaccrual loans to total loans |
0.39 | % | 0.14 | % | ||||
| Total nonperforming assets to total assets |
0.38 | % | 0.27 | % | ||||
Total nonperforming assets increased to $8.75 million at September 30, 2026 from $5.73 million at December 31, 2025. The increase was primarily in farmland and pertains to well collateralized loans.
Nonaccrual loans as of September 30, 2026 and December 31, 2025 include $1.92 million and $460,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.
The following tables include the composition of the commercial real estate loan category:
| September 30, 2026 |
||||||||||||||||
| Non-Owner Occupied |
Owner Occupied |
Total |
Percent of Total CRE |
|||||||||||||
| (Dollars In Thousands) |
||||||||||||||||
| Automotive related |
$ | - | $ | 31,527 | $ | 31,527 | 4.02 | % | ||||||||
| Bars and restaurants |
2,485 | 18,224 | 20,709 | 2.64 | ||||||||||||
| Car washes |
106 | - | 106 | 0.01 | ||||||||||||
| Construction and related industries |
3,768 | 24,432 | 28,200 | 3.59 | ||||||||||||
| Healthcare and social assistance |
19,528 | 10,849 | 30,377 | 3.87 | ||||||||||||
| Hospitality industry related |
- | 9,627 | 9,627 | 1.23 | ||||||||||||
| Hotels and other traveler accommodations |
88,093 | - | 88,093 | 11.23 | ||||||||||||
| Industrial/warehouse |
41,655 | - | 41,655 | 5.31 | ||||||||||||
| Lessors of mini warehouses and self-storage units |
20,312 | - | 20,312 | 2.59 | ||||||||||||
| Lessors of nonresidential buildings |
63,293 | - | 63,293 | 8.07 | ||||||||||||
| Lessors of other real estate property |
28,013 | - | 28,013 | 3.57 | ||||||||||||
| Multifamily |
212,306 | - | 212,306 | 27.04 | ||||||||||||
| Office space |
16,249 | 52,858 | 69,107 | 8.81 | ||||||||||||
| Other real estate rental and leasing |
8,287 | - | 8,287 | 1.06 | ||||||||||||
| Real estate leasing activities |
- | 42,068 | 42,068 | 5.36 | ||||||||||||
| Wholesale and retail trade |
2,615 | 25,711 | 28,326 | 3.61 | ||||||||||||
| Other |
17,563 | 45,137 | 62,700 | 7.99 | ||||||||||||
| Total commercial real estate |
$ | 524,273 | $ | 260,433 | $ | 784,706 | 100.00 | % | ||||||||
| December 31, 2025 |
||||||||||||||||
| Non-Owner Occupied |
Owner Occupied |
Total |
Percent of Total CRE |
|||||||||||||
| (Dollars In Thousands) |
||||||||||||||||
| Automotive related |
$ | - | $ | 23,339 | $ | 23,339 | 3.67 | % | ||||||||
| Bars and restaurants |
5,341 | 15,803 | 21,144 | 3.32 | ||||||||||||
| Car washes |
979 | - | 979 | 0.15 | ||||||||||||
| Construction and related industries |
17,889 | 14,227 | 32,116 | 5.05 | ||||||||||||
| Healthcare and social assistance |
9,746 | 9,016 | 18,762 | 2.95 | ||||||||||||
| Hospitality industry related |
- | 11,706 | 11,706 | 1.84 | ||||||||||||
| Hotels and other traveler accommodations |
80,037 | - | 80,037 | 12.59 | ||||||||||||
| Industrial/warehouse |
56,337 | - | 56,337 | 8.86 | ||||||||||||
| Lessors of mini warehouses and self-storage units |
18,926 | - | 18,926 | 2.98 | ||||||||||||
| Lessors of nonresidential buildings |
59,323 | - | 59,323 | 9.33 | ||||||||||||
| Lessors of other real estate property |
29,003 | - | 29,003 | 4.56 | ||||||||||||
| Multifamily |
109,041 | - | 109,041 | 17.14 | ||||||||||||
| Office space |
19,610 | 44,235 | 63,845 | 10.04 | ||||||||||||
| Other real estate rental and leasing |
2,351 | - | 2,351 | 0.37 | ||||||||||||
| Real estate leasing activities |
- | 30,452 | 30,452 | 4.79 | ||||||||||||
| Wholesale and retail trade |
7,140 | 13,104 | 20,244 | 3.18 | ||||||||||||
| Other |
34,028 | 24,337 | 58,365 | 9.18 | ||||||||||||
| Total commercial real estate |
$ | 449,751 | $ | 186,219 | $ | 635,970 | 100.00 | % | ||||||||
Commercial real estate loans made up $784.71 million, or 45.69%, of the Bank's total loan portfolio at September 30, 2026, compared to $635.97 million, or 41.9%, at December 31, 2025. During the three months ended September 30, 2026, the Bank reassessed the loan classification of real estate holding companies based on the qualifying criteria for owner occupied loans defined in regulatory reporting guidance. As a result, commercial real estate loans totaling $66.1 million were reclassified from non-owner occupied to owner occupied as of September 30, 2026. The Bank's commercial real estate loans are primarily permanent loans secured by improved property such as office buildings, retail stores, commercial warehouses, and multifamily. The terms and conditions of each loan are tailored to the needs of the borrower and based on the financial strength of the project and any guarantors. Generally, commercial real estate loans originated by the Bank will not exceed 80.0% of the appraised value or the selling price of the property, whichever is less. The Bank's commercial real estate portfolio's average loan-to-value ratio range was 31% to 58% by property type as of September 30, 2026.
The Bank's asset quality with respect to commercial real estate loans has remained strong despite recent economic and market conditions. The Bank has limited exposure in the office space sector, none of which is located in central business districts. Management believes that the Bank has implemented appropriate risk management practices, including regular and ongoing loan reviews, stress tests, and sensitivity analysis. Loan reviews include monitoring past due rates, non-performing trends, concentrations, loan-to-value ratios, and other qualitative factors. The Bank's loan policy is robust and is updated annually or as needed to meet the risk mitigation and strategic goals of the Bank.
Financial Condition – continued
Deposits and Other Sources of Funds
The following table includes deposit accounts by category:
| September 30, |
December 31, |
|||||||||||||||
| 2026 |
2025 |
|||||||||||||||
| Percent |
Percent |
|||||||||||||||
| Amount |
of Total |
Amount |
of Total |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| Noninterest checking |
$ | 453,774 | 25.18 | % | $ | 452,183 | 25.38 | % | ||||||||
| Interest-bearing checking |
206,781 | 11.47 | 218,484 | 12.27 | ||||||||||||
| Savings |
208,271 | 11.56 | 207,789 | 11.66 | ||||||||||||
| Money market |
467,596 | 25.95 | 440,971 | 24.75 | ||||||||||||
| Total |
1,336,422 | 74.16 | 1,319,427 | 74.06 | ||||||||||||
| Certificates of deposit accounts: |
||||||||||||||||
| IRA certificates |
20,254 | 1.12 | 20,926 | 1.17 | ||||||||||||
| Other certificates |
445,426 | 24.72 | 441,246 | 24.77 | ||||||||||||
| Total certificates of deposit |
465,680 | 25.84 | 462,172 | 25.94 | ||||||||||||
| Total deposits |
$ | 1,802,102 | 100.00 | % | $ | 1,781,599 | 100.00 | % | ||||||||
Deposits increased by $20.50 million, or 1.2%, from December 31, 2025 to September 30, 2026. Money market increased by $26.62 million, time certificates of deposit increased by $3.51 million, noninterest checking increased by $1.59 million and savings increased by $482,000. These increases were partially offset by a decrease in interest-bearing checking of $11.70 million.
The Bank's estimated amount of uninsured deposits was $369.27 million, or 20.2%, of deposits including accrued interest at September 30, 2026, compared to $354.59 million, or 19.5%, at December 31, 2025.
The following table summarizes borrowing activity:
| September 30, |
December 31, |
|||||||||||||||
| 2026 |
2025 |
|||||||||||||||
| Net |
Percent |
Net |
Percent |
|||||||||||||
| Amount |
of Total |
Amount |
of Total |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| FHLB advances and other borrowings |
$ | 196,759 | 81.54 | % | $ | 38,022 | 46.10 | % | ||||||||
| Other long-term debt: |
||||||||||||||||
| Subordinated debentures fixed at 3.50% to floating, due 2032 |
39,382 | 16.32 | 39,295 | 47.65 | ||||||||||||
| Subordinated debentures variable at 3-Month SOFR plus 1.68%, due 2035 |
5,155 | 2.14 | 5,155 | 6.25 | ||||||||||||
| Total other long-term debt |
44,537 | 18.46 | 44,450 | 53.90 | ||||||||||||
| Total borrowings |
$ | 241,296 | 100.00 | % | $ | 82,472 | 100.00 | % | ||||||||
Total borrowings increased by $158.83 million, or 192.6%, to $241.30 million at September 30, 2026 from $82.47 million at December 31, 2025, due to an increase in FHLB advances and other borrowings, which were utilized to support loan growth.
Shareholders’ Equity
Total shareholders’ equity increased by $315,000 to $192.13 million at September 30, 2026 from $191.81 million at December 31, 2025. The increase was primarily attributed to net income of $10.71 million. The increase was partially offset by other comprehensive loss, net of tax of $7.89 million and dividends paid of $3.49 million. The increase in other comprehensive loss, net of tax was primarily a result of increased interest rates.
Analysis of Net Interest Income
The Bank’s earnings have historically depended primarily upon net interest income, which is the difference between interest income earned on loans and investments and interest paid on deposits and any borrowed funds. It is the single largest component of Eagle’s operating income. Net interest income is affected by (i) the difference between rates of interest earned on loans and investments and rates paid on interest-bearing deposits and borrowings (the “interest rate spread”) and (ii) the relative amounts of loans and investments and interest-bearing deposits and borrowings.
The following table includes average balances for financial condition items, as well as interest and dividends and average yields related to the average balances. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances and reported in loans receivable as loans carrying a zero yield. The yields include the effect of deferred fees and discounts and premiums that are amortized or accreted to interest income or expense.
| Three Months Ended September 30, 2026 |
Three Months Ended September 30, 2025 |
|||||||||||||||||||||||
| Average |
Interest |
Average |
Interest |
|||||||||||||||||||||
| Daily |
and |
Yield/ |
Daily |
and |
Yield/ |
|||||||||||||||||||
| Balance |
Dividends |
Cost(4) |
Balance |
Dividends |
Cost(4) |
|||||||||||||||||||
| (Dollars in Thousands) |
||||||||||||||||||||||||
| Assets: |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Investment securities |
$ | 282,446 | $ | 2,323 | 3.26 | % | $ | 280,683 | $ | 2,322 | 3.28 | % | ||||||||||||
| FHLB and FRB stock |
11,422 | 136 | 4.72 | 10,233 | 225 | 8.72 | ||||||||||||||||||
| Loans receivable(1) |
1,626,026 | 25,518 | 6.23 | 1,581,510 | 25,213 | 6.32 | ||||||||||||||||||
| Other earning assets |
4,379 | 21 | 1.90 | 7,375 | 74 | 3.98 | ||||||||||||||||||
| Total interest-earning assets |
1,924,273 | 27,998 | 5.77 | 1,879,801 | 27,834 | 5.87 | ||||||||||||||||||
| Noninterest-earning assets |
249,434 | 251,514 | ||||||||||||||||||||||
| Total assets |
$ | 2,173,707 | $ | 2,131,315 | ||||||||||||||||||||
| Liabilities and equity: |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposit accounts: |
||||||||||||||||||||||||
| Checking |
$ | 217,733 | $ | 83 | 0.15 | % | $ | 219,932 | $ | 110 | 0.20 | % | ||||||||||||
| Savings |
211,067 | 31 | 0.06 | 196,886 | 31 | 0.06 | ||||||||||||||||||
| Money market |
450,556 | 2,469 | 2.17 | 450,622 | 2,842 | 2.50 | ||||||||||||||||||
| Certificates of deposit |
464,375 | 3,895 | 3.33 | 456,416 | 4,196 | 3.65 | ||||||||||||||||||
| FHLB advances and other borrowings |
98,628 | 1,085 | 4.36 | 99,266 | 1,144 | 4.57 | ||||||||||||||||||
| Other long-term debt |
44,519 | 448 | 3.99 | 59,242 | 823 | 5.51 | ||||||||||||||||||
| Total interest-bearing liabilities |
1,486,878 | 8,011 | 2.14 | 1,482,364 | 9,146 | 2.45 | ||||||||||||||||||
| Noninterest checking |
443,661 | 422,231 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities |
44,338 | 43,898 | ||||||||||||||||||||||
| Total liabilities |
1,974,877 | 1,948,493 | ||||||||||||||||||||||
| Total equity |
198,830 | 182,822 | ||||||||||||||||||||||
| Total liabilities and equity |
$ | 2,173,707 | $ | 2,131,315 | ||||||||||||||||||||
| Net interest income/interest rate spread(2) |
$ | 19,987 | 3.63 | % | $ | 18,688 | 3.42 | % | ||||||||||||||||
| Net interest margin(3) |
4.12 | % | 3.94 | % | ||||||||||||||||||||
| Total interest earning assets to interest-bearing liabilities |
129.42 | % | 126.81 | % | ||||||||||||||||||||
| (1) Includes loans held-for-sale. |
| (2) Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities. |
| (3) Net interest margin represents income before the provision for credit losses divided by average interest-earning assets. |
| (4) For purposes of this table, tax exempt income is not calculated on a tax equivalent basis. |
| Nine Months Ended September 30, 2026 |
Nine Months Ended September 30, 2025 |
|||||||||||||||||||||||
| Average |
Interest |
Average |
Interest |
|||||||||||||||||||||
| Daily |
and |
Yield/ |
Daily |
and |
Yield/ |
|||||||||||||||||||
| Balance |
Dividends |
Cost(4) |
Balance |
Dividends |
Cost(4) |
|||||||||||||||||||
| (Dollars in Thousands) |
||||||||||||||||||||||||
| Assets: |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Investment securities |
$ | 281,611 | $ | 6,835 | 3.25 | % | $ | 287,176 | $ | 7,170 | 3.34 |
% | ||||||||||||
| FHLB and FRB stock |
8,557 | 386 | 6.03 |
11,126 | 721 | 8.66 |
||||||||||||||||||
| Loans receivable(1) |
1,566,863 | 73,176 | 6.24 |
1,554,547 | 72,975 | 6.28 |
||||||||||||||||||
| Other earning assets |
17,105 | 434 | 3.39 |
6,328 | 187 | 3.95 |
||||||||||||||||||
| Total interest-earning assets |
1,874,136 | 80,831 | 5.77 |
1,859,177 | 81,053 | 5.83 |
||||||||||||||||||
| Noninterest-earning assets |
246,806 | 250,277 | ||||||||||||||||||||||
| Total assets |
$ | 2,120,942 | $ | 2,109,454 | ||||||||||||||||||||
| Liabilities and equity: |
||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposit accounts: |
||||||||||||||||||||||||
| Checking |
$ | 215,905 | $ | 258 | 0.16 |
% | $ | 219,903 | $ | 309 | 0.19 |
% | ||||||||||||
| Savings |
211,113 | 91 | 0.06 |
200,494 | 93 | 0.06 |
||||||||||||||||||
| Money market |
445,554 | 7,328 | 2.20 | 414,284 | 7,549 | 2.44 |
||||||||||||||||||
| Certificates of deposit |
469,090 | 12,095 | 3.45 |
458,917 | 12,976 | 3.78 |
||||||||||||||||||
| FHLB advances and other borrowings |
53,242 | 1,890 | 4.75 |
121,145 | 4,229 | 4.67 |
||||||||||||||||||
| Other long-term debt |
44,489 | 1,341 | 4.03 |
59,203 | 2,162 | 4.88 |
||||||||||||||||||
| Total interest-bearing liabilities |
1,439,393 | 23,003 | 2.14 | 1,473,946 | 27,318 | 2.48 |
||||||||||||||||||
| Noninterest checking |
441,145 | 414,862 | ||||||||||||||||||||||
| Other noninterest-bearing liabilities |
43,580 | 40,947 | ||||||||||||||||||||||
| Total liabilities |
1,924,118 | 1,929,755 | ||||||||||||||||||||||
| Total equity |
196,824 | 179,699 | ||||||||||||||||||||||
| Total liabilities and equity |
$ | 2,120,942 | $ | 2,109,454 | ||||||||||||||||||||
| Net interest income/interest rate spread(2) |
$ | 57,828 | 3.63 |
% | $ | 53,735 | 3.35 |
% | ||||||||||||||||
| Net interest margin(3) |
4.13 | % | 3.86 | % | ||||||||||||||||||||
| Total interest earning assets to interest-bearing liabilities |
130.20 | % | 126.14 | % | ||||||||||||||||||||
| (1) Includes loans held-for-sale. |
| (2) Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities. |
| (3) Net interest margin represents income before the provision for credit losses divided by average interest-earning assets. |
| (4) For purposes of this table, tax exempt income is not calculated on a tax equivalent basis. |
Net Interest Margin ("NIM"). Net interest margin for the three months ended September 30, 2026 was 4.12%, an increase of 18-basis points compared to the three months ended September 30, 2025. Net interest margin for the nine months ended September 30, 2026 was 4.13%, an increase of 27-basis points compared to the nine months ended September 30, 2025.The increase in NIM reflects lower funding costs and improved balance sheet leverage through a favorable funding mix and reduced average borrowings, with stable yields on interest‑earning assets.
Rate/Volume Analysis
The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to: (1) changes in volume multiplied by the old rate; (2) changes in rate, which are changes in rate multiplied by the old volume; and (3) changes not solely attributable to rate or volume, which have been allocated proportionately to the change due to volume and the change due to rate.
| Three Months Ended September 30, |
||||||||||||||||||||||||
| 2026 |
2025 |
|||||||||||||||||||||||
| Due to |
Due to |
|||||||||||||||||||||||
| Volume |
Rate |
Net |
Volume |
Rate |
Net |
|||||||||||||||||||
| (In Thousands) |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Investment securities |
$ | 15 | $ | (14 | ) | $ | 1 | $ | (213 | ) | $ | (63 | ) | $ | (276 | ) | ||||||||
| FHLB and FRB stock |
26 | (115 | ) | (89 | ) | (83 | ) | 42 | (41 | ) | ||||||||||||||
| Loans receivable(1) |
709 | (404 | ) | 305 | 527 | 884 | 1,411 | |||||||||||||||||
| Other earning assets |
(30 | ) | (23 | ) | (53 | ) | 8 | (28 | ) | (20 | ) | |||||||||||||
| Total interest earning assets |
720 | (556 | ) | 164 | 239 | 835 | 1,074 | |||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Checking |
(1 | ) | (26 | ) | (27 | ) | 3 | 9 | 12 | |||||||||||||||
| Savings |
2 | (2 | ) | - | (2 | ) | - | (2 | ) | |||||||||||||||
| Money market |
- | (373 | ) | (373 | ) | 593 | (77 | ) | 516 | |||||||||||||||
| Certificates of deposit |
73 | (374 | ) | (301 | ) | 226 | (763 | ) | (537 | ) | ||||||||||||||
| FHLB advances and other borrowings |
(7 | ) | (52 | ) | (59 | ) | (1,744 | ) | (196 | ) | (1,940 | ) | ||||||||||||
| Other long-term debt |
(205 | ) | (170 | ) | (375 | ) | 2 | 137 | 139 | |||||||||||||||
| Total interest-bearing liabilities |
(138 | ) | (997 | ) | (1,135 | ) | (922 | ) | (890 | ) | (1,812 | ) | ||||||||||||
| Change in net interest income |
$ | 858 | $ | 441 | $ | 1,299 | $ | 1,161 | $ | 1,725 | $ | 2,886 | ||||||||||||
| Nine Months Ended September 30, |
||||||||||||||||||||||||
| 2026 |
2025 |
|||||||||||||||||||||||
| Due to |
Due to |
|||||||||||||||||||||||
| Volume |
Rate |
Net |
Volume |
Rate |
Net |
|||||||||||||||||||
| (In Thousands) |
||||||||||||||||||||||||
| Interest earning assets: |
||||||||||||||||||||||||
| Investment securities |
$ | (139 | ) | $ | (196 | ) | $ | (335 | ) | $ | (554 | ) | $ | (229 | ) | $ | (783 | ) | ||||||
| FHLB and FRB stock |
(166 | ) | (169 | ) | (335 | ) | (152 | ) | 96 | (56 | ) | |||||||||||||
| Loans receivable(1) |
578 | (377 | ) | 201 | 1,560 | 2,889 | 4,449 | |||||||||||||||||
| Other earning assets |
318 | (71 | ) | 247 | 71 | (152 | ) | (81 | ) | |||||||||||||||
| Total interest earning assets |
591 | (813 | ) | (222 | ) | 925 | 2,604 | 3,529 | ||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Checking |
(6 | ) | (45 | ) | (51 | ) | 4 | 22 | 26 | |||||||||||||||
| Savings |
5 | (7 | ) | (2 | ) | (7 | ) | (2 | ) | (9 | ) | |||||||||||||
| Money market |
570 | (791 | ) | (221 | ) | 1,222 | (168 | ) | 1,054 | |||||||||||||||
| Certificates of deposit |
288 | (1,169 | ) | (881 | ) | 668 | (1,434 | ) | (766 | ) | ||||||||||||||
| FHLB advances and other borrowings |
(2,371 | ) | 32 | (2,339 | ) | (3,252 | ) | (725 | ) | (3,977 | ) | |||||||||||||
| Other long-term debt |
(537 | ) | (284 | ) | (821 | ) | 5 | 109 | 114 | |||||||||||||||
| Total interest-bearing liabilities |
(2,051 | ) | (2,264 | ) | (4,315 | ) | (1,360 | ) | (2,198 | ) | (3,558 | ) | ||||||||||||
| Change in net interest income |
$ | 2,642 | $ | 1,451 | $ | 4,093 | $ | 2,285 | $ | 4,802 | $ | 7,087 | ||||||||||||
| (1) Includes loans held-for-sale. |
Results of Operations
The following compares the results of operations for the three months ended September 30, 2026 and 2025.
| Three Months Ended |
||||||||||||||||
| September 30, |
||||||||||||||||
| 2026 |
2025 |
Dollar Change |
Percent Change |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| Interest and dividend income |
$ | 27,998 | $ | 27,834 | $ | 164 | 0.6 | % | ||||||||
| Interest expense |
8,011 | 9,146 | (1,135 | ) | -12.4 | |||||||||||
| Net interest income |
19,987 | 18,688 | 1,299 | 7.0 | ||||||||||||
| Provision for credit losses |
1,859 | 62 | 1,797 | 2,898.4 | ||||||||||||
| Net interest income after provision for credit losses |
18,128 | 18,626 | (498 | ) | -2.7 | |||||||||||
| Noninterest income |
5,097 | 4,717 | 380 | 8.1 | ||||||||||||
| Noninterest expense |
19,380 | 18,387 | 993 | 5.4 | ||||||||||||
| Provision for income taxes |
831 | 1,326 | (495 | ) | -37.3 | |||||||||||
| Net income |
$ | 3,014 | $ | 3,630 | $ | (616 | ) | -17.0 | % | |||||||
Net Income. Eagle’s net income for the three months ended September 30, 2026, was $3.01 million, compared to $3.63 million for the three months ended September 30, 2025. The decrease of $616,000 was due to an increase in noninterest expenses of $993,000 and a decrease in net interest income after provision for credit losses of $498,000. These changes were partially offset by decrease in the provision for income taxes of $495,000 and an increase in noninterest income of $380,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.38. Basic and diluted earnings per common share were $0.47 and $0.46 for the three months ended September 30, 2025, respectively.
Net Interest Income. Net interest income increased to $19.99 million for the three months ended September 30, 2026, from $18.69 million for the three months ended September 30, 2025. The increase of $1.30 million, or 7.0%, was primarily the result of a decrease in interest expense of $1.14 million.
Interest and Dividend Income. Interest and dividend income was $28.00 million for the three months ended September 30, 2026, compared to $27.83 million for the three months ended September 30, 2025, an increase of $164,000, or 0.6%. Interest and fees on loans increased slightly to $25.52 million for the three months ended September 30, 2026, from $25.21 million for the three months ended September 30, 2025. This increase of $305,000, or 1.2%, was due to a higher average loan balances, partially offset by a decline in the average yield on loans, period over period. Average balances for loans receivable, including loans held-for-sale, was $1.63 billion for the three months ended September 30, 2026, compared to $1.58 billon for the three months ended September 30, 2025, an increase of $44.52 million, or 2.8%. However, the average interest rate earned on loans receivable decreased by nine-basis points, from 6.32% for the three months ended September 30, 2025, to 6.23% for the current period. Interest accretion on purchased loans was $173,000 for the three months ended September 30, 2026, which resulted in a three-basis point increase in net interest margin compared to $234,000 for the three months ended September 30, 2025, which resulted in a five-basis point increase in net interest margin.
Interest Expense. Total interest expense was $8.01 million for the three months ended September 30, 2026, decreasing from $9.15 million for the three months ended September 30, 2025. The decrease of $1.14 million, or 12.4%, was primarily due to a decrease in interest expense on deposits of $701,000, in addition to a decrease in interest expense on total borrowings of $434,000. The decrease in interest expense on deposits was driven by the overall rate on total deposits being down from 1.63% for the three months ended September 30, 2025, compared to 1.44% for the three months ended September 30,2026. However, the average balance for deposits increased from $1.75 billion for the three months ended September 30, 2025, to $1.79 billion for the three months ended September 30, 2026. Interest expense on total borrowings decreased by $434,000, period over period. The average rate paid decreased from 4.92% for the three months ended September 30, 2025, to 4.25% for the three months ended September 30, 2026. The average balance for total borrowings also decreased from $158.51 million for the three months ended September 30, 2025, to $143.15 million for the three months ended September 30, 2026.
Provision for Credit Losses. Provision for credit losses was $1.86 million for the three months ended September 30, 2026, compared to $62,000 the three months ended September 30, 2025. The provision for credit losses for the three months ended September 30, 2026, included the provision for credit losses on loans of $1.88 million and a recapture of the provision for unfunded commitments of $20,000. The higher provision for 2026 was largely due to loan growth and does not reflect any meaningful borrower specific deterioration.
Noninterest Income. Total noninterest income was $5.10 million for the three months ended September 30, 2026, compared to $4.72 million for the three months ended September 30, 2025, an increase of $380,000, or 8.1%. This increase was primarily due to an increase of $339,000 in other noninterest income.
Noninterest Expense. Noninterest expense was $19.38 million for the three months ended September 30, 2026, compared to $18.39 million for the three months ended September 30, 2025, an increase of $993,000, or 5.4%. The driver of the increase was salaries and employee benefits, which increased $650,000. The largest component of this increase period over period was health insurance expense, which increased $544,000.
Provision for Income Taxes. Provision for income taxes was $831,000 for the three months ended September 30, 2026, compared to $1.33 million for the three months ended September 30, 2025. The effective tax rate was 21.6% for the current period compared to 26.8% for the three months ended September 30, 2025.
The following compares the results of operations for the nine months ended September 30, 2026 and 2025.
| Nine Months Ended |
||||||||||||||||
| September 30, |
||||||||||||||||
| 2026 |
2025 |
Dollar Change |
Percent Change |
|||||||||||||
| (Dollars in Thousands) |
||||||||||||||||
| Interest and dividend income |
$ | 80,831 | $ | 81,053 | $ | (222 | ) | -0.3 | % | |||||||
| Interest expense |
23,003 | 27,318 | (4,315 | ) | -15.8 | |||||||||||
| Net interest income |
57,828 | 53,735 | 4,093 | 7.6 | ||||||||||||
| Provision for credit losses |
2,481 | 1,142 | 1,339 | 117.3 | ||||||||||||
| Net interest income after provision for credit losses |
55,347 | 52,593 | 2,754 | 5.2 | ||||||||||||
| Noninterest income |
14,995 | 13,540 | 1,455 | 10.7 | ||||||||||||
| Noninterest expense |
56,583 | 53,319 | 3,264 | 6.1 | ||||||||||||
| Provision for income taxes |
3,046 | 2,708 | 338 | 12.5 | ||||||||||||
| Net income |
$ | 10,713 | $ | 10,106 | $ | 607 | 6.0 | % | ||||||||
Net Income. Eagle’s net income for the nine months ended September 30, 2026, was $10.71 million, compared to $10.11 million for the nine months ended September 30, 2025. The increase of $607,000 was due to an increase in net interest income after provision for credit losses of $2.75 million and an increase in noninterest income of $1.46 million. These changes were partially offset by an increase in noninterest expense of $3.26 million and an increase in the provision for income taxes of $338,000. For the current period, basic earnings per common share and diluted earnings per common share were $1.37 and $1.36, respectively. Basic earnings per common share and diluted earnings per common share were $1.30 and $1.29 for the nine months ended September 30, 2025, respectively.
Net Interest Income. Net interest income increased to $57.83 million for the nine months ended September 30, 2026, from $53.74 million for the nine months ended September 30, 2025. The increase of $4.09 million, or 7.6%, was primarily the result of a decrease in interest expense of $4.32 million.
Interest and Dividend Income. Interest and dividend income was $80.83 million for the nine months ended September 30, 2026, compared to $81.05 million for the nine months ended September 30, 2025, a slight decrease of $222,000, or 0.3%. Interest from investment securities available-for-sale decreased by $335,000, or 4.7%, period over period, due to a decrease in average interest rates earned on investments from 3.34% for the nine months ended September 30, 2025, to 3.25% for the nine months ended September 30, 2026. In addition, average balances for investments decreased from $287.18 million for the nine months ended September 30, 2025, to $281.61 million for the nine months ended September 30, 2026. However, interest and fees on loans increased to $73.18 million for the nine months ended September 30, 2026, compared to $72.98 million for the nine months ended September 30, 2025. Average balances for loans receivable, including loans held-for-sale, was $1.57 billion for the nine months ended September 30, 2026, compared to $1.55 billion for the nine months ended September 30, 2025, an increase of $12.31 million, or 0.8%. The average interest rate earned on loans receivable decreased modestly by four-basis points, from 6.28% for the nine months ended September 30, 2025, to 6.24% for the current period. Interest accretion on purchased loans was $452,000 for the nine months ended September 30, 2026, which resulted in a four-basis point increase in net interest margin compared to $1.01 million for the nine months ended September 30, 2025, which resulted in a seven-basis point increase in net interest margin.
Interest Expense. Total interest expense was $23.00 million for the nine months ended September 30, 2026, decreasing from $27.32 million for the nine months ended September 30, 2025. The decrease of $4.32 million, or 15.8%, was due in part to a decrease of $3.16 million in interest expense on total borrowings. In addition, interest expense on deposits decreased by $1.16 million, period over period. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $180.35 million for the nine months ended September 30, 2025, to $97.73 million for the nine months ended September 30, 2026. The average rate paid also decreased from 4.74% for the nine months ended September 30, 2025, to 4.42% for the nine months ended September 30, 2026. The overall average rate on total deposits was down from 1.64% for the nine months ended September 30, 2025, compared to 1.48% for the nine months ended September 30, 2026. However, the average balance for total deposits increased from $1.71 billon for the nine months ended September 30, 2025, to $1.78 billion for the nine months ended September 30, 2026.
Provision for Credit Losses. Provision for credit losses was $2.48 million for the nine months ended September 30, 2026, compared to $1.14 million for the nine months ended September 30, 2025. The provision for credit losses for the nine months ended September 30, 2026, included the provision for credit losses on loans of $2.39 million and the provision for unfunded commitments of $90,000. The higher provision for 2026 was driven by loan growth and does not reflect any meaningful borrower specific deterioration.
Noninterest Income. Total noninterest income was $15.00 million for the nine months ended September 30, 2026, compared to $13.54 million for the nine months ended September 30, 2025, an increase of $1.46 million, or 10.7%. This increase was largely due to an increase of $964,000 in other noninterest income. Other noninterest income includes insurance proceeds of $581,000 received for the nine months ended September 30, 2026, primarily related to smoke damage caused by a furnace fire and other windstorm damage. In addition, mortgage banking, net increased $280,000 to $8.26 million for the nine months ended September 30, 2026, from $7.98 million for the nine months ended September 30, 2025. Mortgage banking, net, includes net gain on sale of mortgage loans, which increased to $5.92 million for the nine months ended September 30, 2026, compared to $5.66 million for the nine months ended September 30, 2025. During the nine months ended September 30, 2026, $213.33 million residential mortgage loans were sold, compared to $165.65 million in the nine months ended September 30, 2025. However, gross margin levels decreased from 3.42% for the nine months ended September 30, 2025, to 2.78% for the nine months ended September 30, 2026 due to a competitive mortgage market.
Noninterest Expense. Noninterest expense was $56.58 million for the nine months ended September 30, 2026, compared to $53.32 million for the nine months ended September 30, 2025, an increase of $3.26 million, or 6.1%. The driver of the increase was salaries and employee benefits, which increased $2.87 million. The largest components of this increase period over period were health insurance expense, which increased $1.32 million, and commission expense, which increased $632,000 due to higher mortgage origination volumes.
Provision for Income Taxes. Provision for income taxes was $3.05 million for the nine months ended September 30, 2026, compared to $2.71 million for the nine months ended September 30, 2025. The effective tax rate was 22.1% for the current period compared to 21.1% for the nine months ended September 30, 2025.
Liquidity and Capital Resources
Liquidity
The Bank is required by regulation to maintain sufficient levels of liquidity for safety and soundness purposes. Appropriate levels of liquidity will depend upon the types of activities in which the company engages. For internal reporting purposes, the Bank uses policy minimums of 1.0% and 8.0% for “basic surplus” and “basic surplus with FHLB” as internally defined. In general, the “basic surplus” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of CD maturities and other deposits that may leave the Bank in the next 30 days divided by total assets. “Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moines. The Bank exceeded those minimum ratios as of September 30, 2026 and December 31, 2025.
The Bank’s primary sources of funds are deposits, repayment of loans and mortgage-backed securities, maturities of investments, funds provided from operations, advances from the FHLB of Des Moines and other borrowings. Scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable. However, other sources of funds, such as deposit flows and loan prepayments, can be greatly influenced by the general level of interest rates, economic conditions and competition. The Company uses liquidity resources principally to fund existing and future loan commitments. It also uses them to fund maturing certificates of deposit and demand deposit withdrawals, for investment purposes, to meet operating expenses and capital expenditures, for dividend payments, for stock repurchases and to maintain adequate liquidity levels.
Liquidity may be adversely affected by unexpected deposit outflows, higher interest rates paid by competitors, and similar matters. Management monitors projected liquidity needs and determines the level desirable based in part on the Bank's commitments to make loans and management’s assessment of the Bank's ability to generate funds.
The Company's available borrowing capacity was approximately $452.00 million as of September 30, 2026 and $601.00 million as of December 31, 2025.
| September 30, |
December 31, |
|||||||||||||||
| 2026 |
2025 |
|||||||||||||||
| Borrowings |
Remaining Borrowing |
Borrowings |
Remaining Borrowing |
|||||||||||||
| Outstanding |
Capacity |
Outstanding |
Capacity |
|||||||||||||
| (In Thousands) |
||||||||||||||||
| Federal Home Loan Bank advances |
$ | 183,759 | $ | 335,153 | $ | 22,917 | $ | 492,553 | ||||||||
| Federal Reserve Bank discount window |
- | 20,083 | - | 23,506 | ||||||||||||
| Correspondent bank lines of credit |
13,000 | 97,000 | 15,105 | 84,895 | ||||||||||||
| Total FHLB advances and other borrowings |
$ | 196,759 | $ | 452,236 | $ | 38,022 | $ | 600,954 | ||||||||
Brokered deposits are another source of funding the Bank may utilize from time to time. As of September 30, 2026, the Bank had no brokered certificates and no brokered money market deposits. As of December 31, 2025, the Bank had no brokered certificates and $3.21 million in brokered money market deposits. Internal policy limits for brokered deposits are set at 10% of assets.
In addition to bank level liquidity management, Eagle must manage liquidity at the parent company level for various operating needs, including the servicing of debt, the payment of dividends on our common stock, share repurchases, payment of general corporate expenses, and potential capital infusions into subsidiaries. The primary source of liquidity for Eagle consists of dividends from the Bank, which is governed by certain rules and regulations of the Montana Division of Banking and Financial Institutions and the Federal Reserve, and access to capital markets.
Eagle renewed its line of credit and increased the amount from $15.00 million to $25.00 million on September 30, 2026. The line of credit was utilized during 2025 to finance the redemption payment for subordinated notes of $15.00 million. The variable interest rate was modified from 0.50% below prime to 0.88% below prime upon renewal. The line of credit has a two-year maturity. The outstanding balance for the line of credit was $13.00 million and $15.00 million at September 30, 2026 and December 31, 2025, respectively. The rate was 6.13% and 6.25% as of September 30, 2026 and December 31, 2025, respectively. Draws on the line of credit are secured by the assets of the Company, including capital stock of the Bank, and includes certain financial covenants and negative covenants. The Company is in compliance with the covenants under the line of credit. Outstanding draws on the line impact remaining borrowing capacity for the Company’s correspondent bank lines of credit included above.
Eagle presently believes that the sources of liquidity discussed above, including existing liquid funds on hand, are sufficient to meet its anticipated funding needs in the short and long term. However, if economic conditions were to significantly deteriorate, regulatory capital requirements for Eagle or the Bank were to increase as the result of regulatory directives or otherwise, or Eagle were to believe it is prudent to enhance current liquidity levels, then Eagle may seek additional liquidity from external sources.
Capital Resources
As of September 30, 2026, the Bank’s internally determined measurement of sensitivity to interest rate movements, as measured by a 200-basis point rise in interest rates scenario, increased the economic value of equity (“EVE”) by 0.1%, compared to an increase of 3.4% at December 31, 2025. A 200-basis point decrease in interest rates scenario decreased EVE by 5.4%, compared to a decrease of 9.3% at December 31, 2025. The Bank is within the guidelines set forth by the Board of Directors for interest rate risk sensitivity in rising interest rate scenarios.
The Bank's regulatory capital was in excess of all applicable regulatory requirements and the Bank is deemed "well capitalized" pursuant to State of Montana and FRB rules as of September 30, 2026. The Bank's actual capital amounts and ratios as of September 30, 2026 are presented in the table below and all of the ratios, with the exception of the Tier 1 capital adjusted total average assets ratio, include the capital conservation buffer of 2.50%.
| Minimum |
||||||||||||||||||||||||
| To Be Well |
||||||||||||||||||||||||
| Minimum Required |
Capitalized Under |
|||||||||||||||||||||||
| for Capital Adequacy |
Prompt Corrective |
|||||||||||||||||||||||
| Actual |
Purposes |
Action Provisions |
||||||||||||||||||||||
| Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||
| (Dollars in Thousands) |
||||||||||||||||||||||||
| September 30, 2026: |
||||||||||||||||||||||||
| Total risk-based capital to risk weighted assets |
$ | 250,259 | 13.32 | % | $ | 197,325 | 10.50 | % | $ | 187,928 | 10.00 | % | ||||||||||||
| Tier 1 capital to risk weighted assets |
228,839 | 12.18 | 159,739 | 8.50 | 150,343 | 8.00 | ||||||||||||||||||
| Common equity Tier 1 capital to risk weighted assets |
228,839 | 12.18 | 131,550 | 7.00 | 122,153 | 6.50 | ||||||||||||||||||
| Tier 1 capital to adjusted total average assets |
228,839 | 10.62 | 86,230 | 4.00 | 107,787 | 5.00 | ||||||||||||||||||
The Bank's regulatory capital was in excess of all applicable regulatory requirements and the Bank is deemed "well capitalized" pursuant to State of Montana and FRB rules as of December 31, 2025. The Bank's actual capital amounts and ratios as of December 31, 2025 are presented in the table below and all of the ratios, with the exception of the Tier 1 capital adjusted total average assets ratio, include the capital conservation buffer of 2.50%.
| Minimum |
||||||||||||||||||||||||
| To Be Well |
||||||||||||||||||||||||
| Minimum Required |
Capitalized Under |
|||||||||||||||||||||||
| for Capital Adequacy |
Prompt Corrective |
|||||||||||||||||||||||
| Actual |
Purposes |
Action Provisions |
||||||||||||||||||||||
| Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||
| (Dollars in Thousands) |
||||||||||||||||||||||||
| December 31, 2025: |
||||||||||||||||||||||||
| Total risk-based capital to risk weighted assets |
$ | 241,786 | 14.28 | % | $ | 177,739 | 10.50 | % | $ | 169,275 | 10.00 | % | ||||||||||||
| Tier 1 capital to risk weighted assets |
222,576 | 13.15 | 143,884 | 8.50 | 135,420 | 8.00 | ||||||||||||||||||
| Common equity Tier 1 capital to risk weighted assets |
222,576 | 13.15 | 118,492 | 7.00 | 110,029 | 6.50 | ||||||||||||||||||
| Tier 1 capital to adjusted total average assets |
222,576 | 10.62 | 83,832 | 4.00 | 104,790 | 5.00 | ||||||||||||||||||
Impact of Inflation and Changing Prices
Our condensed consolidated financial statements and the accompanying notes, which are found in Part I, Item 1, have been prepared in accordance with generally accepted accounting principles, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time and due to inflation. The impact of inflation is reflected in the increased cost of our operations. Interest rates have a greater impact on our performance than do the general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.
Interest Rate Risk
Interest rate risk is the potential for loss of future earnings resulting from adverse changes in the level of interest rates. Interest rate risk results from several factors and could have a significant impact on the Company’s net interest income, which is the Company's primary source of revenue. Net interest income is affected by changes in interest rates, the relationship between rates on interest-bearing assets and liabilities, the impact of interest rate fluctuations on asset prepayments and the mix of interest-bearing assets and liabilities.
Although interest rate risk is inherent in the banking industry, banks are expected to have sound risk management practices in place to measure, monitor and control interest rate exposures. The objective of interest rate risk management is to contain the risks associated with interest rate fluctuations. The process involves identification and management of the sensitivity of net interest income to changing interest rates.
The ongoing monitoring and management of this risk is an important component of the Company’s asset/liability committee, which is governed by policies established by the Company’s Board that are reviewed and approved annually. The Board delegates responsibility for carrying out the asset/liability management policies to the Bank’s asset/liability committee. In this capacity, the asset/liability committee develops guidelines and strategies impacting the Company’s asset/liability management related activities based upon estimated market risk sensitivity, policy limits and overall market interest rate levels and trends. The Company’s goal of its asset and liability management practices is to maintain or increase the level of net interest income within an acceptable level of interest rate risk.
The Bank has established acceptable levels of interest rate risk as follows for an instantaneous and permanent shock in rates: projected net interest income over the next twelve months (i.e. year-1) will not be reduced by more than 15.0% given an immediate increase or decrease in interest rates of up to 300 basis points, and the subsequent twelve months (i.e. year-2) will not be reduced by more than 20.0% given an immediate increase or decrease in interest rates of up to 300 basis points.
The following table includes the Bank’s net interest income sensitivity analysis.
| Changes in Market |
As of September 30, 2026 |
Board Policy |
Board Policy |
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| Interest Rates |
Rate Sensitivity |
Limits |
Limits |
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| (Basis Points) |
Year 1 |
Year 2 |
Year 1 |
Year 2 |
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| +300 |
-7.4% |
5.1% |
-15.0% |
-20.0% |
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| +200 |
-4.9% |
5.0% |
-15.0% |
-15.0% |
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| +100 |
-2.2% |
5.3% |
-10.0% |
-10.0% |
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| -100 |
1.2% |
2.4% |
-10.0% |
-10.0% |
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| -200 |
2.4% |
-0.5% |
-15.0% |
-15.0% |
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| -300 |
4.6% |
-2.2% |
-15.0% |
-20.0% |
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The accounting and financial reporting policies of Eagle are in accordance with generally accepted accounting principles ("GAAP") and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Eagle has identified certain of its accounting policies as “critical accounting policies,” consisting of those related to the allowance for credit losses and goodwill. In determining which accounting policies are critical in nature, Eagle has identified the policies that require significant judgment or involve complex estimates. It is management's practice to discuss critical accounting policies with the Board of Directors' Audit Committee on a periodic basis, including the development, selection, implementation, and disclosure of the critical accounting policies. The application of these policies has a significant impact on Eagle’s unaudited interim consolidated financial statements. Eagle’s financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 – Organization and Summary of Significant Accounting Policies" in Eagle’s 2025 Form 10-K, as filed with the SEC on March 9, 2026, should be reviewed for a greater understanding of how we record and report our financial performance. There have been no significant changes to the accounting policies, estimates, and assumptions, or the judgments affecting the application of these estimates and assumptions from those disclosed in Eagle’s 2025 Form 10-K.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
This item has been omitted based on Eagle’s status as a smaller reporting company.
Item 4. Controls and Procedures
As of the end of the period covered by this report, we conducted an evaluation under the supervision and with the participation of our management including our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”) of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to management to allow timely decisions regarding required disclosure. Based on that evaluation, our CEO and CFO concluded that as of September 30, 2026, our disclosure controls and procedures were effective. During the last quarter, there were no changes in the Company’s internal control over financial reporting that have materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.
| Legal Proceedings. |
Neither the Company nor the Bank is involved in any pending legal proceeding other than non-material legal proceedings occurring in the ordinary course of business.
| Risk Factors |
There have not been any material changes in the risk factors previously disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
| Unregistered Sales of Equity Securities and Use of Proceeds. |
| Defaults Upon Senior Securities. |
Not applicable.
| Mine Safety Disclosures |
Not applicable.
| Other Information. |
During the three months ended September 30, 2026, of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Part II - OTHER INFORMATION - continued
| Exhibits. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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EAGLE BANCORP MONTANA, INC. |
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| Date: November 4, 2026 |
By: |
/s/ Laura F. Clark |
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Laura F. Clark | |
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CEO |
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| Date: November 4, 2026 | By: |
/s/ Miranda J. Spaulding |
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Miranda J. Spaulding |
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EVP/CFO |
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Exhibit 10.4
THIRD AMENDMENT
TO THE
SALARY CONTINUATION AGREEMENT
FOR
RACHEL R. AMDAHL
THIS AMENDMENT (the “Amendment”) is adopted as of the 1st day of October, 2026, by Opportunity Bank of Montana, formerly American Federal Savings Bank (the “Company”).
The Company and Rachel R. Amdahl (the “Executive”) executed the Salary Continuation Agreement effective as of November 16, 2006 (as amended, the “Agreement”). The Company now wishes to increase the Agreement’s benefits.
NOW, THEREFORE, the Company adopts the following amendment to the Agreement:
Section 2.1.1 of the Agreement shall be deleted in its entirety and replaced by the following:
2.1.1 Amount of Benefit. The annual benefit under this Section 2.1 is Sixty-One Thousand Five Hundred Dollars ($61,500).
Section 2.4 of the Agreement shall be deleted in its entirety and replaced by the following:
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2.4 |
Early Termination. If a Termination of Employment occurs prior to the Early Retirement Date, other than a Termination for Cause described in Section 5.2, the Company shall pay to the Executive the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. |
The Schedule A originally attached to the Agreement shall be removed and replaced by the Schedule A attached hereto.
IN WITNESS WHEREOF, a representative of the Company has executed this Amendment as indicated below and as of the date above:
| Executive: | Employer: | ||
| /s/ Rachel R. Amdahl | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 10.5
SALARY CONTINUATION AGREEMENT
This Salary Continuation Agreement (the “Agreement”), by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Dustin Barber (the “Executive”), made this 28th day of September, 2026, formalizes the agreements and understanding between the Employer and the Executive.
WITNESSETH:
WHEREAS, the Executive is employed by the Employer;
WHEREAS, the Employer recognizes the valuable services the Executive has performed for the Employer and wishes to encourage the Executive’s continued employment and to provide the Executive with additional incentive to achieve corporate objectives;
WHEREAS, the Employer wishes to provide the terms and conditions upon which the Employer shall pay additional retirement benefits to the Executive;
WHEREAS, the Employer and the Executive intend this Agreement shall at all times be administered and interpreted in compliance with Code Section 409A; and
WHEREAS, the Employer intends this Agreement shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred compensation arrangement, maintained primarily to provide supplemental retirement benefits for the Executive, a member of select group of management or highly compensated employee of the Employer;
NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Employer and the Executive agree as follows:
ARTICLE 1
DEFINITIONS
For the purpose of this Agreement, the following phrases or terms shall have the indicated meanings:
1.1 “Accrued Benefit” means the dollar value of the liability that should be accrued by the Employer, under Generally Accepted Accounting Principles, for the Employer’s obligation to the Executive under this Agreement, calculated by applying Accounting Standards Codification 710-10 and the Discount Rate.
1.2 “Administrator” means the Board or its designee.
1.3 “Affiliate” means any business entity with whom the Employer would be considered a single employer under Code Section 414(b) and 414(c). Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code Section 409A.
1.4 “Beneficiary” means the person or persons designated in writing by the Executive to receive benefits hereunder in the event of the Executive’s death.
1.5 “Board” means the Board of Directors of the Employer.
1.6 “Cause” means any of the following acts or circumstances: gross negligence or gross neglect of duties to the Employer; conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Executive’s employment with the Employer; or fraud, disloyalty, dishonesty or willful violation of any law or significant Employer policy committed in connection with the Executive's employment and resulting in a material adverse effect on the Employer.
1.7 “Change in Control” means a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer, as such change is defined in Code Section 409A and regulations thereunder.
1.8 “Claimant” means a person who believes that he or she is being denied a benefit to which he or she is entitled hereunder.
1.9 “Code” means the Internal Revenue Code of 1986, as amended.
1.10 “Disability” means a condition of the Executive whereby the Executive either: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Employer. The Administrator will determine whether the Executive has incurred a Disability based on its own good faith determination and may require the Executive to submit to reasonable physical and mental examinations for this purpose. The Executive will also be deemed to have incurred a Disability if determined to be totally disabled by the Social Security Administration or in accordance with a disability insurance program, provided that the definition of disability applied under such disability insurance program complies with the initial sentence of this Section.
1.11 “Discount Rate” means the rate used by the Administrator for determining the Accrued Benefit. The Administrator may adjust the Discount Rate to maintain the rate within reasonable standards according to Generally Accepted Accounting Principles and applicable bank regulatory guidance.
1.12 “Early Termination” means Separation from Service before Normal Retirement Age except when such Separation from Service occurs due to termination for Cause.
1.13 “Effective Date” means October 1, 2026.
1.14 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
1.15 “Normal Retirement Age” means the date the Executive attains age sixty-five (65).
1.16 “Plan Year” means each twelve (12) month period commencing on October 1 and ending on September 30 of each year. The initial Plan Year shall commence on the Effective Date and end on the following September 30.
1.17 “Schedule A” means the schedule attached hereto and made a part hereof. Schedule A shall be updated upon a change to any of the benefits described in Article 2 hereof.
1.18 “Separation from Service” means a termination of the Executive’s employment with the Employer and its Affiliates for reasons other than death or Disability. A Separation from Service may occur as of a specified date for purposes of the Agreement even if the Executive continues to provide some services for the Employer or its Affiliates after that date, provided that the facts and circumstances indicate that the Employer and the Executive reasonably anticipated at that date that either no further services would be performed after that date, or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed over the immediately preceding thirty-six (36) month period (or the full period during which the Executive performed services for the Employer, if that is less than thirty-six (36) months). A Separation from Service will not be deemed to have occurred while the Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, the period for which a statute or contract provides the Executive with the right to reemployment with the Employer. If the Executive’s leave exceeds six (6) months but the Executive is not entitled to reemployment under a statute or contract, the Executive incurs a Separation from Service on the next day following the expiration of such six (6) month period. In determining whether a Separation from Service occurs the Administrator shall consider, among other things, the definition of “service recipient” and “employer” set forth in Treasury regulation §1.409A-1(h)(3). The Administrator shall have full and final authority to determine conclusively whether a Separation from Service occurs, and the date of such Separation from Service.
1.19 “Specified Employee” means an individual that satisfies the definition of a “key employee” of the Employer as such term is defined in Code Section 416(i) (without regard to Code Section 416(i)(5)), provided that the stock of the Employer is publicly traded on an established securities market or otherwise, as defined in Treasury regulation §1.897-1(m). If the Executive is a key employee at any time during the twelve (12) months ending on December 31, the Executive is a Specified Employee for the twelve (12) month period commencing on the first day of the following April.
ARTICLE 2
PAYMENT OF BENEFITS
2.1 Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of One Hundred Thirty-Nine Thousand Five Hundred Dollars ($139,500) in lieu of any other benefit hereunder. The annual benefit will be paid for fifteen (15) years in equal monthly installments commencing the month following Separation from Service.
2.2 Early Termination Benefit. If Early Termination occurs, the Employer shall pay the Executive the Early Termination annual benefit shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid for fifteen (15) years in equal monthly installments commencing the month following Separation from Service.
2.3 Death Prior to Commencement of Benefit Payments. In the event the Executive dies prior to Separation from Service, the Employer shall pay the Beneficiary an annual benefit in the amount of One Hundred Thirty-Nine Thousand Five Hundred Dollars ($139,500) in lieu of any other benefit hereunder. The annual benefit will be paid for fifteen (15) years in equal monthly installments commencing the month following the Executive’s death.
2.4 Death Subsequent to Commencement of Benefit Payments. In the event the Executive dies while receiving payments, but prior to receiving all payments due and owing hereunder, the Employer shall pay the Beneficiary the same amounts at the same times as the Employer would have paid the Executive had the Executive survived.
2.5 Termination for Cause. Notwithstanding any provisions of this Agreement to the contrary, if the Employer terminates the Executive’s employment for Cause, then the Executive shall not be entitled to any benefits under the terms of this Agreement.
2.6 Restriction on Commencement of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would otherwise be made to the Executive due to Separation from Service shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following Separation from Service, or if earlier, upon the Executive’s death. All subsequent distributions shall be paid as they would have had this Section not applied.
2.7 Acceleration of Payments. Except as specifically permitted herein, no acceleration of the time or schedule of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury regulation §1.409A-3(j)(4) in the following circumstances: (i) as a result of certain domestic relations orders; (ii) in compliance with ethics agreements with the federal government; (iii) in compliance with the ethics laws or conflicts of interest laws; (iv) in limited cashouts (but not in excess of the limit under Code Section 402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may become due at any time that the Agreement fails to meet the requirements of Code Section 409A.
2.8 Delays in Payment by Employer. A payment may be delayed to a date after the designated payment date under any of the circumstances described below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment will not constitute a subsequent deferral election, so long as the Employer treats all payments to similarly situated employees on a reasonably consistent basis.
(a) Payments that would violate Federal securities laws or other applicable law. A payment may be delayed where the Employer reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at the earliest date at which the Employer reasonably anticipates that the making of the payment will not cause such violation. The making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Internal Revenue Code is not treated as a violation of law.
(b) Solvency. Notwithstanding the above, a payment may be delayed where the payment would jeopardize the ability of the Employer to continue as a going concern.
2.9 Treatment of Payment as Made on Designated Payment Date. Solely for purposes of determining compliance with Code Section 409A, any payment under this Agreement made after the required payment date shall be deemed made on the required payment date provided that such payment is made by the latest of: (i) the end of the calendar year in which the payment is due; (ii) the 15th day of the third calendar month following the payment due date; (iii) if Employer cannot calculate the payment amount on account of administrative impracticality which is beyond the Executive’s control, the end of the first calendar year which payment calculation is practicable; and (iv) if Employer does not have sufficient funds to make the payment without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make the payment.
2.10 Facility of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Administrator may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence; or (ii) to the conservator or administrator or, if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof.
2.11 Excise Tax Limitation. Notwithstanding any provision of this Agreement to the contrary, if any benefit payment hereunder would be treated as an “excess parachute payment” under Code Section 280G, the Employer shall reduce such benefit payment to the extent necessary to avoid treating such benefit payment as an excess parachute payment. The Executive shall be entitled to only the reduced benefit and shall forfeit any amount over and above the reduced amount.
2.12 Changes in Form or Timing of Benefit Payments. The Employer and the Executive may, subject to the terms hereof, amend this Agreement to delay the timing or change the form of payments. Any such amendment:
(a) must take effect not less than twelve (12) months after the amendment is made;
(b) must, for benefits distributable due solely to the arrival of a specified date, or on account of Separation from Service or Change in Control, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made;
(c) must, for benefits distributable due solely to the arrival of a specified date, be made not less than twelve (12) months before distribution is scheduled to begin; and
(d) may not accelerate the time or schedule of any distribution.
ARTICLE 3
BENEFICIARIES
3.1 Designation of Beneficiaries. The Executive may designate any person to receive any benefits payable under the Agreement upon the Executive’s death, and the designation may be changed from time to time by the Executive by filing a new designation. Each designation will revoke all prior designations by the Executive, shall be in the form prescribed by the Administrator, and shall be effective only when filed in writing with the Administrator during the Executive’s lifetime. If the Executive names someone other than the Executive’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Administrator, executed by the Executive’s spouse and returned to the Administrator. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved.
3.2 Absence of Beneficiary Designation. In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the Executive, the Employer shall pay the benefit payment to the Executive’s spouse. If the spouse is not living then the Employer shall pay the benefit payment to the Executive’s living descendants per stirpes, and if there are no living descendants, to the Executive’s estate. In determining the existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Executive’s personal representative, executor, or administrator.
ARTICLE 4
ADMINISTRATION
4.1 Administrator Duties. The Administrator shall be responsible for the management, operation, and administration of the Agreement. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by the Employer, Executive or Beneficiary. No provision of this Agreement shall be construed as imposing on the Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law.
4.2 Administrator Authority. The Administrator shall enforce this Agreement in accordance with its terms, shall be charged with the general administration of this Agreement, and shall have all powers necessary to accomplish its purposes.
4.3 Binding Effect of Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in this Agreement.
4.4 Termination of Participation. If the Administrator determines in good faith that the Executive no longer qualifies as a member of a select group of management or highly compensated employees, as determined in accordance with ERISA, the Administrator shall have the right, in its sole discretion, to cease further benefit accruals hereunder.
4.5 Compliance with Code Section 409A. The Employer and the Executive intend that the Agreement comply with the provisions of Code Section 409A to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts are actually paid to the Executive or Beneficiary. This Agreement shall be construed, administered and governed in a manner that affects such intent, and the Administrator shall not take any action that would be inconsistent therewith.
ARTICLE 5
CLAIMS AND REVIEW PROCEDURES
5.1 Claims Procedure. A Claimant who has not received benefits under this Agreement that he or she believes should be distributed shall make a claim for such benefits as follows.
(a) Initiation – Written Claim. The Claimant initiates a claim by submitting to the Administrator a written claim for benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.
(b) Timing of Administrator Response. The Administrator shall respond to such Claimant within forty-five (45) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional thirty (30) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45) day period, that an additional period is required. The extension notice shall specifically explain the standards on which entitlement to a disability benefit is based, the unresolved issues that prevent a decision on the claim and the additional information needed from the Claimant to resolve those issues, and the Claimant shall be afforded at least forty-five (45) days within which to provide the specified information.
(c) Notice of Decision. If the Administrator denies all or a part of the claim, the Administrator shall notify the Claimant in writing of such denial in a culturally and linguistically appropriate manner. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a notice that the Claimant has a right to request a review of the claim denial and an explanation of the Agreement’s review procedures and the time limits applicable to such procedures; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review, and a description of any time limit for bringing such an action; (v) for any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views presented by the Claimant of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Employer in connection with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social Security Administration (vi) for any Disability claim, the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist; and (vii) for any Disability claim, a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by Department of Labor Regulation Section 2560.503-1(m)(8).
5.2 Review Procedure. If the Administrator denies all or a part of the claim, the Claimant shall have the opportunity for a full and fair review by the Administrator of the denial as follows.
(a) Additional Evidence. Prior to the review of the denied claim, the Claimant shall be given, free of charge, any new or additional evidence considered, relied upon, or generated by the Administrator, or any new or additional rationale, as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided, to give the Claimant a reasonable opportunity to respond prior to that date.
(b) Initiation – Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s notice of denial, must file with the Administrator a written request for review.
(c) Additional Submissions – Information Access. After such request, the Claimant may submit written comments, documents, records and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits.
(d) Considerations on Review. In considering the review, the Administrator shall consider all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. Additional considerations shall be required in the case of a claim for Disability benefits. The claim shall be reviewed by an individual or committee who did not make the initial determination that is subject of the appeal and who is not a subordinate of the individual who made the determination. Additionally, the review shall be made without deference to the initial adverse benefit determination. If the initial adverse benefit determination was based in whole or in part on a medical judgment, the Administrator will consult with a health care professional with appropriate training and experience in the field of medicine involving the medical judgment. The health care professional who is consulted on appeal will not be the same individual who was consulted during the initial determination and will not be the subordinate of such individual. If the Administrator obtained the advice of medical or vocational experts in making the initial adverse benefits determination (regardless of whether the advice was relied upon), the Administrator will identify such experts.
(e) Timing of Administrator Response. The Administrator shall respond in writing to such Claimant within forty-five (45) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional forty-five (45) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects to render its decision.
(f) Notice of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The Administrator shall write the notification in a culturally and linguistically appropriate manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a); (v) for any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views presented by the Claimant of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Employer in connection with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social Security Administration; and (vi) for any Disability claim, the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist.
5.3 Exhaustion of Remedies. The Claimant must follow these claims review procedures and exhaust all administrative remedies before taking any further action with respect to a claim for benefits.
5.4 Failure to Follow Procedures. In the case of a claim for Disability benefits, if the Administrator fails to strictly adhere to all the requirements of this claims procedure with respect to a Disability claim, the Claimant is deemed to have exhausted the administrative remedies available under the Agreement, and shall be entitled to pursue any available remedies under ERISA Section 502(a) on the basis that the Administrator has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim, except where the violation was: (a) de minimis; (b) non-prejudicial; (c) attributable to good cause or matters beyond the Administrator’s control; (d) in the context of an ongoing good-faith exchange of information; and (e) not reflective of a pattern or practice of noncompliance. The Claimant may request a written explanation of the violation from the Administrator, and the Administrator must provide such explanation within ten (10) days, including a specific description of its basis, if any, for asserting that the violation should not cause the administrative remedies to be deemed exhausted. If a court rejects the Claimant’s request for immediate review on the basis that the Administrator met the standards for the exception, the claim shall be considered as re-filed on appeal upon the Administrator’s receipt of the decision of the court. Within a reasonable time after the receipt of the decision, the Administrator shall provide the Claimant with notice of resubmission.
ARTICLE 6
AMENDMENT AND TERMINATION
6.1 Agreement Amendment Generally. Except as provided in Section 6.2, this Agreement may be amended only by a written agreement signed by both the Employer and the Executive.
6.2 Amendment to Ensure Proper Characterization of Agreement. Notwithstanding anything in this Agreement to the contrary, the Agreement may be amended by the Employer at any time, if found necessary in the opinion of the Employer, (i) to ensure that the Agreement is characterized as plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA, (ii) to conform the Agreement to the requirements of any applicable law or (iii) to comply with the written instructions of the Employer’s auditors or banking regulators.
6.3 Agreement Termination Generally. The Employer may terminate this Agreement at any time by providing written notice of such termination to the Executive. The benefit upon such termination shall be the Accrued Benefit as of the date of termination. Except as provided in Section 6.4, such termination shall not cause a distribution of benefits under this Agreement. Rather, upon such termination, benefit distributions will be made at the earliest distribution event permitted under Article 2.
6.4 Effect of Complete Termination. Notwithstanding anything to the contrary in Section 6.3, and subject to the requirements of Code Section 409A and Treasury regulation §1.409A-3(j)(4)(ix), at certain times the Employer may completely terminate and liquidate the Agreement. In the event of such a complete termination, the Employer shall pay the Executive the Accrued Benefit. Such complete termination of the Agreement shall occur only under the following circumstances and conditions.
(a) Corporate Dissolution or Bankruptcy. The Employer may terminate and liquidate this Agreement within twelve (12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court, provided that all benefits paid under the Agreement are included in the Executive’s gross income in the latest of: (i) the calendar year which the termination occurs; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.
(b) Change in Control. The Employer may terminate and liquidate this Agreement by taking irrevocable action to terminate and liquidate within the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Agreement will then be treated as terminated only if all substantially similar arrangements sponsored by the Employer which are treated as deferred under a single plan under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each participant who experienced the Change in Control so that the Executive and any participants in any such similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the date the Employer takes the irrevocable action to terminate the arrangements.
(c) Discretionary Termination. The Employer may terminate and liquidate this Agreement provided that: (i) the termination does not occur proximate to a downturn in the financial health of the Employer; (ii) all arrangements sponsored by the Employer and Affiliates that would be aggregated with any terminated arrangements under Treasury Regulations §1.409A-1(c) are terminated; (iii) no payments, other than payments that would be payable under the terms of this Agreement if the termination had not occurred, are made within twelve (12) months of the date the Employer takes the irrevocable action to terminate this Agreement; (iv) all payments are made within twenty-four (24) months following the date the Employer takes the irrevocable action to terminate and liquidate this Agreement; and (v) neither the Employer nor any of its Affiliates adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations §1.409A-1(c) if the Executive participated in both arrangements, at any time within three (3) years following the date the Employer takes the irrevocable action to terminate this Agreement.
ARTICLE 7
MISCELLANEOUS
7.1 No Effect on Other Rights. This Agreement constitutes the entire agreement between the Employer and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. Nothing contained herein will confer upon the Executive the right to be retained in the service of the Employer nor limit the right of the Employer to discharge or otherwise deal with the Executive without regard to the existence hereof.
7.2 State Law. To the extent not governed by ERISA, the provisions of this Agreement shall be construed and interpreted according to the internal law of the State of Montana without regard to its conflicts of laws principles.
7.3 Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Agreement shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.
7.4 Nonassignability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.
7.5 Unsecured General Creditor Status. Payment to the Executive or any Beneficiary hereunder shall be made from assets which shall continue, for all purposes, to be part of the general, unrestricted assets of the Employer and no person shall have any interest in any such asset by virtue of any provision of this Agreement. The Employer’s obligation hereunder shall be an unfunded and unsecured promise to pay money in the future. If the Employer purchases an insurance policy insuring the life of the Executive to recover the cost of providing benefits hereunder, neither the Executive nor the Beneficiary shall have any rights whatsoever in said policy or the proceeds therefrom.
7.6 Life Insurance. If the Employer chooses to obtain insurance on the life of the Executive in connection with its obligations under this Agreement, the Executive hereby agrees to take such physical examinations and to supply such information as may be required by the Employer or the insurance company designated by the Employer.
7.7 Unclaimed Benefits. The Executive shall keep the Employer informed of the Executive’s current address and the current address of the Beneficiary. If the location of the Executive is not made known to the Employer within three years after the date upon which any payment of any benefits may first be made, the Employer shall delay payment of the Executive’s benefit payment(s) until the location of the Executive is made known to the Employer; however, the Employer shall only be obligated to hold such benefit payment(s) for the Executive until the expiration of three (3) years. Upon expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Beneficiary. If the location of the Beneficiary is not made known to the Employer by the end of an additional two (2) month period following expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Executive’s estate. If there is no estate in existence at such time or if such fact cannot be determined by the Employer, the Executive and Beneficiary shall thereupon forfeit all rights to any benefits provided under this Agreement.
7.8 Suicide or Misstatement. No benefit shall be distributed hereunder if the Executive commits suicide within two (2) years after the Effective Date, or if an insurance company which issued a life insurance policy covering the Executive and owned by the Employer denies coverage (i) for material misstatements of fact made by the Executive on an application for life insurance, or (ii) for any other reason.
7.9 Removal. Notwithstanding anything in this Agreement to the contrary, the Employer shall not distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued pursuant to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to the Executive pursuant to this Agreement shall, if required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder.
7.10 Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Agreement shall be sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer’s principal business office. Any notice or filing required or permitted to be given to the Executive or Beneficiary under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive or Beneficiary, as appropriate. Any notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or on the receipt for registration or certification.
7.11 Headings and Interpretation. Headings and sub-headings in this Agreement are inserted for reference and convenience only and shall not be deemed part of this Agreement. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.
7.12 Alternative Action. In the event it becomes impossible for the Employer or the Administrator to perform any act required by this Agreement due to regulatory or other constraints, the Employer or Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Employer, provided that such alternative act does not violate Code Section 409A.
7.13 Coordination with Other Benefits. The benefits provided for the Executive or the Beneficiary under this Agreement are in addition to any other benefits available to the Executive under any other plan or program for employees of the Employer. This Agreement shall supplement and shall not supersede, modify, or amend any other such plan or program except as may otherwise be expressly provided herein.
7.14 Inurement. This Agreement shall be binding upon and shall inure to the benefit of the Employer, its successor and assigns, and the Executive, the Executive’s successors, heirs, executors, administrators, and the Beneficiary.
7.15 Tax Withholding. The Employer may make such provisions and take such action as it deems necessary or appropriate for the withholding of any taxes which the Employer is required by any law or regulation to withhold in connection with any benefits under the Agreement.
7.16 Responsibility for Taxes. The Executive shall be responsible for the payment of all individual tax liabilities relating to any benefits paid hereunder. The Executive acknowledges that in no event will the Employer be liable to the Executive for any taxes resulting from the Executive’s participation in the Agreement, including any additional penalty, excise or other taxes that might be imposed as a result of Code Section 409A.
7.17 Aggregation of Agreement. If the Employer offers other non-qualified deferred compensation plans in addition to this Agreement, this Agreement and those plans shall be treated as a single plan to the extent required under Code Section 409A.
IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Agreement document as indicated below:
| Executive: | Employer: | ||
| /s/ Dustin Barber | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 10.6
SECOND AMENDMENT TO
SALARY CONTINUATION AGREEMENT
FOR
ALANA BINDE
THIS AMENDMENT (the “Amendment”) is adopted as of the 1st day of October, 2026, by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Alana Binde (the “Executive”).
The Employer and the Executive executed a Salary Continuation Agreement effective as of September 1, 2021 (as amended the “Agreement”). The Employer and the Executive now wish to increase the Agreement’s benefits and add an Early Termination benefit.
NOW, THEREFORE, the Employer and the Executive adopt the following amendment to the Agreement:
Section 2.1 shall be deleted in its entirety and replaced by the following:
2.1 Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Sixty-Seven Thousand Dollars ($67,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
Section 2.3 shall be deleted in its entirety and replaced by the following:
2.3 Early Involuntary Termination Benefit. If Early Involuntary Termination occurs, the Employer shall pay the Executive the Early Involuntary Termination annual benefit amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
2.3a Early Termination Benefit. If a Separation from Service occurs before Early Retirement Age, and it is not an Early Involuntary Termination or a termination for Cause, the Employer shall pay the Executive the Early Termination annual benefit amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
Section 2.5 shall be deleted in its entirety and replaced by the following:
2.5 Death Prior to Commencement of Benefit Payments. In the event the Executive dies prior to Separation from Service, the Employer shall pay the Beneficiary an annual benefit in the amount of Sixty-Seven Thousand Dollars ($67,000) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.
The Schedule A originally attached to the Agreement shall be removed and replaced by the Schedule A attached hereto.
IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Amendment as indicated below and as of the date above:
| Executive: | Employer: | ||
| /s/ Alana Binde | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 10.7
FIRST AMENDMENT TO
SALARY CONTINUATION AGREEMENT
FOR
LINDA CHILTON
THIS AMENDMENT (the “Amendment”) is adopted this 15th day of September, 2026, by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Linda Chilton (the “Executive”).
The Employer and the Executive executed a Salary Continuation Agreement effective as of October 1, 2020 (the “Agreement”). The Employer and the Executive now wish to provide an early termination benefit, not just an early involuntary termination benefit.
NOW, THEREFORE, the Employer and the Executive adopt the following amendment to the Agreement:
Section 1.14 of the Agreement shall be deleted in its entirety.
Section 2.3 of the Agreement shall be deleted in its entirety and replaced by the following:
2.3 Early Termination Benefit. If Separation from Service occurs prior to Early Retirement Age, the Employer shall pay the Executive the amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
The Schedule A originally attached to the Agreement shall be removed and replaced by the Schedule A attached hereto.
IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Amendment as indicated below and as of the date above:
| Executive: | Employer: | ||
| /s/ Linda Chilton | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 10.8
FOURTH AMENDMENT TO
SALARY CONTINUATION AGREEMENT
FOR
DALE FIELD
THIS AMENDMENT (the “Amendment”) is adopted as of the 1st day of October, 2026, by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Dale Field (the “Executive”).
The Employer and the Executive executed a Salary Continuation Agreement effective as of November 1, 2014 (as amended, the “Agreement”). The Employer and the Executive now wish to increase the Agreement’s benefits.
NOW, THEREFORE, the Employer and the Executive adopt the following amendment to the Agreement:
Section 2.1 shall be deleted in its entirety and replaced by the following:
2.1 Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Ninety-Five Thousand Five Hundred Dollars ($95,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
The following Section 2.3a shall be added to the Agreement immediately following Section 2.3.
2.3a Early Termination Benefit. If a Separation from Service occurs before Early Retirement Age, and it is not an Early Involuntary Termination or a termination for Cause, the Employer shall pay the Executive the Early Termination annual benefit amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
Section 2.5 shall be deleted in its entirety and replaced by the following:
2.5 Death Prior to Commencement of Benefit Payments. In the event the Executive dies prior to Separation from Service, the Employer shall pay the Beneficiary an annual benefit in the amount of Ninety-Five Thousand Five Hundred Dollars ($95,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.
The Schedule A originally attached to the Agreement shall be removed and replaced by the Schedule A attached hereto.
IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Amendment as indicated below and as of the date above:
| Executive: | Employer: | ||
| /s/ Dale Field | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 10.9
THIRD AMENDMENT TO
SALARY CONTINUATION AGREEMENT
FOR
CHANTELLE NASH
THIS AMENDMENT (the “Amendment”) is adopted as of the 1st day of October, 2026, by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Chantelle Nash (the “Executive”).
The Employer and the Executive executed a Salary Continuation Agreement effective as of November 1, 2014 (as amended, the “Agreement”). The Employer and the Executive now wish to increase the Agreement’s benefits.
NOW, THEREFORE, the Employer and the Executive adopt the following amendment to the Agreement:
Section 2.1 shall be deleted in its entirety and replaced by the following:
2.1 Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit in the amount of Ninety-Two Thousand Five Hundred Dollars ($92,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
The following Section 2.3a shall be added to the Agreement immediately following Section 2.3.
2.3a Early Termination Benefit. If a Separation from Service occurs before Early Retirement Age, and it is not an Early Involuntary Termination or a termination for Cause, the Employer shall pay the Executive the Early Termination annual benefit amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.
Section 2.5 shall be deleted in its entirety and replaced by the following:
2.5 Death Prior to Commencement of Benefit Payments. In the event the Executive dies prior to Separation from Service, the Employer shall pay the Beneficiary an annual benefit in the amount of Ninety-Two Thousand Five Hundred Dollars ($92,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.
The Schedule A originally attached to the Agreement shall be removed and replaced by the Schedule A attached hereto.
IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Amendment as indicated below and as of the date above:
| Executive: | Employer: | ||
| /s/ Chantelle Nash | By: | /s/ Laura F. Clark | |
| Its: | Chief Executive Officer | ||
Exhibit 31.1
CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302(a) OF THE
SARBANES-OXLEY ACT OF 2002
I, Laura F. Clark certify that:
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1. |
I have reviewed this quarterly report on Form 10-Q of Eagle Bancorp Montana, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
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a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
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b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 4, 2026
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/s/ Laura F. Clark |
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Laura F. Clark |
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Chief Executive Officer |
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(Principal Executive Officer) |
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Exhibit 31.2
CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302(a) OF THE
SARBANES-OXLEY ACT OF 2002
I, Miranda J. Spaulding certify that:
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1. |
I have reviewed this quarterly report on Form 10-Q of Eagle Bancorp Montana, Inc.; |
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2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
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a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
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a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
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b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 4, 2026
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/s/ Miranda J. Spaulding |
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Miranda J. Spaulding |
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Executive Vice President, Chief Financial Officer (Principal Financial Officer) |
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Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Eagle Bancorp Montana, Inc. (the ‘Company’) on Form 10-Q for the period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the ‘Report’), we, Laura F. Clark, Chief Executive Officer of the Company, and Miranda J. Spaulding, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the undersigned’s best knowledge and belief:
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(1) |
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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/s/ Laura F. Clark |
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/s/ Miranda J. Spaulding |
| Laura F. Clark |
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Miranda J. Spaulding |
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Chief Executive Officer (Principal Executive Officer) November 4, 2026 |
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Chief Financial Officer and Principal Accounting Officer (Principal Financial Officer) November 4, 2026 |
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
The foregoing certification is being furnished to the Securities and Exchange Commission and shall not be considered filed as part of the Report.