Eagle Bancorp Montana Earns $3.0 Million, or $0.38 per Diluted Share, in the Third Quarter of 2026, Declares Quarterly Cash Dividend of $0.1475 Per Share

HELENA, Mont., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $3.0 million, or $0.38 per diluted share, in the third quarter of 2026, compared to $3.7 million, or $0.47 per diluted share, in the preceding quarter, and $3.6 million, or $0.46 per diluted share, in the third quarter of 2025. In the first nine months of 2026, net income increased to $10.7 million, or $1.36 per diluted share, compared to $10.1 million, or $1.29 per diluted share, in the first nine months of 2025. Eagle’s board of directors declared a quarterly cash dividend of $0.1475 per share on October 22, 2026. The dividend will be payable on December 4, 2026, to shareholders of record on November 13, 2026. The current dividend represents an annualized yield of 2.58% based on the average closing price of the Company’s common stock reported on NASDAQ during the third quarter of 2026 of $22.91 per share. “Our third quarter was defined by record loan growth and continued strength in our core deposit franchise,” said Laura F. Clark, CEO. “Total loans increased $159.0 million from the prior quarter, with growth across our markets and lending lines that reflects strong customer demand and the deep relationships our bankers have built. Importantly, we grew without compromising our credit discipline or pricing. Net interest margin remained solid at 4.12%, and the larger loan portfolio we built this quarter positions us to grow earnings in the periods ahead. With a strong core deposit base supporting this growth, we enter the final quarter of the year with positive momentum and remain focused on delivering long-term value for our shareholders.” Third Quarter 2026 Highlights (at or for the three-month period ended September 30, 2026, except where noted): Net income was $3.0 million, or $0.38 per diluted share, in the third quarter of 2026, compared to $3.7 million, or $0.47 per diluted share in the preceding quarter, and $3.6 million, or $0.46 per diluted share, in the third quarter a year ago. Net interest margin (“NIM”) was 4.12% in the third quarter of 2026, compared to 4.15% in the preceding quarter and 3.94% in the third quarter a year ago. Net interest income, before the provision for credit losses, increased 4.4% to $20.0 million in the third quarter of 2026, compared to $19.1 million in the second quarter of 2026, and increased 7.0% compared to $18.7 million in the third quarter of 2025. Revenues (net interest income before the provision for credit losses, plus noninterest income) were $25.1 million in the third quarter of 2026, compared to $24.2 million in the preceding quarter and $23.4 million in the third quarter a year ago. Total loans of $1.72 billion increased $159.0 million compared to June 30, 2026, and increased $159.6 million compared to a year earlier. Due to the record loan growth, Eagle recorded a $1.9 million provision for credit losses for the third quarter of 2026, compared to a $343,000 provision for credit losses in the preceding quarter and a $62,000 provision for credit losses in the third quarter a year ago. Borrower specific deterioration did not meaningfully affect the provision for credit losses for the third quarter of 2026. The allowance for credit losses was $19.5 million, or 1.13% of total loans, at September 30, 2026, compared to $17.6 million, or 1.13% of total loans, at June 30, 2026, and $17.7 million, or 1.14% of total loans, a year ago. Total deposits of $1.80 billion increased $11.9 million compared to June 30, 2026, and increased $49.9 million, or 2.8%, compared to a year earlier. Eagles’s common shareholders’ equity (book value) per share was $24.12 at September 30, 2026, compared to $24.78 at June 30, 2026, and $23.45 at September 30, 2025. Tangible book value per share (non-GAAP) was $19.44 at September 30, 2026, compared to $20.07 at June 30, 2026, and $18.63 at September 30, 2025. The Company’s available borrowing capacity was approximately $452.2 million at September 30, 2026, compared to $575.0 million at June 30, 2026, and $508.4 million at September 30, 2025. Short-term FHLB advances were utilized in the quarter to support loan production. The Company paid a quarterly cash dividend in the third quarter of $0.1475 per share on September 4, 2026, to shareholders of record August 14, 2026. Balance Sheet Results Total assets of $2.28 billion at September 30, 2026, increased $162.2 million compared to one year ago, and increased $156.2 million compared to three months earlier. The investment securities portfolio totaled $272.8 million at September 30, 2026, compared to $279.9 million a year ago, and $285.7 million at June 30, 2026. Eagle originated $80.8 million in new residential mortgage loans during the quarter and sold $74.7 million in residential mortgage loans, with an average gross margin on sale of mortgage loans of approximately 2.70%. This production compares to residential mortgage loans originations of $88.1 million in the preceding quarter with sales of $72.5 million and an average gross margin on sale of mortgage loans of approximately 3.07%. Total loans increased $159.6 million compared to a year ago and increased $159.0 million compared to three months earlier. Commercial real estate loans increased 17.0% to $784.7 million at September 30, 2026, compared to $670.4 million a year earlier. Commercial real estate loans were comprised of 66.8% non-owner occupied and 33.2% owner occupied at September 30, 2026. Agricultural and farmland loans increased 0.9% to $316.9 million at September 30, 2026, compared to $314.1 million a year earlier. Residential mortgage loans decreased 5.4% to $141.0 million, compared to $149.1 million a year earlier. Commercial loans increased 22.4% to $175.0 million, compared to $143.0 million a year ago. Commercial construction and development loans decreased 7.8% to $104.6 million, compared to $113.5 million a year ago. Home equity loans increased 8.7% to $115.9 million, residential construction loans increased 64.3% to $58.2 million, and consumer loans decreased 17.5% to $21.1 million, compared to a year ago. Total deposits increased to $1.80 billion at September 30, 2026, from $1.75 billion at September 30, 2025, and $1.79 billion at June 30, 2026. Noninterest-bearing checking accounts represented 25.2%, interest-bearing checking accounts represented 11.5%, savings accounts represented 11.6%, money market accounts comprised 25.9% and time certificates of deposit made up 25.8% of the total deposit portfolio at September 30, 2026. The average cost of total deposits was 1.44% in the third quarter of 2026, compared to 1.49% in the preceding quarter and 1.63% in the third quarter of 2025. The estimated amount of uninsured deposits was approximately $369.3 million, or 20% of total deposits including accrued interest, at September 30, 2026, compared to $359.8 million, or 20% of total deposits including accrued interest, at June 30, 2026. FHLB advances and other borrowings increased to $196.8 million at September 30, 2026, compared to $79.2 million at September 30, 2025, and $52.1 million at June 30, 2026. The average cost of FHLB advances and other borrowings was 4.36% in the third quarter of 2026, compared to 5.30% in the preceding quarter and 4.57% in the third quarter of 2025. Other borrowings at September 30, 2026 include the Company’s line of credit draw for $13.0 million at an average rate of 6.37% for the third quarter of 2026, compared to $13.0 million at an average rate of 6.34% for the second quarter of 2026. Shareholders’ equity was $192.1 million at September 30, 2026, compared to $186.5 million a year earlier and $197.4 million three months earlier. The reduction in shareholders’ equity during the third quarter of 2026 was due to an increase in accumulated other comprehensive loss, net of tax on securities available-for-sale. The decrease in fair value of securities was primarily a result of increased interest rates. Book value per share was $24.12 at September 30, 2026, compared to $23.45 a year earlier, and $24.78 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $19.44 at September 30, 2026, compared to $18.63 a year earlier and $20.07 three months earlier. Operating Results “Our net interest margin contracted three-basis points from the prior quarter but was up 18-basis points over the same period a year ago. Compared with last year, the drop in funding costs more than offset a modest decline in earning asset yields, while funding costs held relatively steady from the prior quarter. Looking ahead, we will continue to focus on loan and deposit pricing as we work to protect our net interest margin in a rising rate environment,” said Spaulding. Eagle’s NIM was 4.12% in the third quarter of 2026, compared to 4.15% in the preceding quarter and 3.94% in the third quarter a year ago. The interest accretion on acquired loans totaled $173,000 and resulted in a three-basis point increase in the NIM during the third quarter of 2026, compared to $94,000 and a two-basis point increase in the NIM during the preceding quarter. The average yield on interest earning assets held steady at 5.77% in the third quarter of 2026, matching the prior quarter, compared to 5.87% in the third quarter a year ago. Funding costs for the third quarter of 2026 increased to 2.14%, compared to 2.12% in the second quarter of 2026 and decreased compared to 2.45% in the third quarter of 2025. For the first nine months of 2026, NIM expanded 27-basis points to 4.13% compared to 3.86% for the first nine months of 2025. Net interest income, before the provision for credit losses, increased 4.4% to $20.0 million in the third quarter of 2026, compared to $19.1 million in the second quarter of 2026, and increased 7.0% compared to $18.7 million in the third quarter of 2025. Year-to-date, net interest income increased 7.6% to $57.8 million, compared to $53.7 million in the same period one year earlier. Revenues for the third quarter of 2026 were $25.1 million, a 3.8% increase compared to $24.2 million in the preceding quarter and a 7.2% increase compared to $23.4 million in the third quarter a year ago. In the first nine months of 2026, revenues were $72.8 million, an 8.2% increase compared to $67.3 million in the first nine months of 2025. Total noninterest income was $5.1 million in the third quarter of 2026, compared to $5.0 million in the preceding quarter, and increased 8.1% compared to $4.7 million in the third quarter a year ago. In the first nine months of 2026, noninterest income increased 10.7% to $15.0 million, compared to $13.5 million in the first nine months of 2025. Net mortgage banking income, the largest component of noninterest income, totaled $2.9 million in the third quarter of 2026, consistent with both the second quarter of 2026 and the third quarter a year ago. Net mortgage banking income increased 3.5% to $8.3 million in the first nine months of 2026, compared to $8.0 million in the first nine months of 2025. “We continue to invest strategically in our team and technology to support long-term growth, while maintaining a disciplined approach to managing expenses,” said Darryl Rensmon, President and Chief Operating Officer. Eagle’s third quarter noninterest expense was $19.4 million, compared to $19.0 million in the preceding quarter, and $18.4 million in the third quarter of 2025. In the first nine months of 2026, noninterest expense increased 6.1% to $56.6 million, compared to $53.3 million in the first nine months of 2025. The increases to the quarterly and year-to-date noninterest expense relate primarily to increases in salaries and employee benefits. For the third quarter of 2026, the Company recorded income tax expense of $831,000, compared to $1.1 million in the preceding quarter and $1.3 million in the third quarter of 2025. The effective tax rate for the third quarter of 2026 was 21.6%, compared to 22.9% for the second quarter of 2026 and 26.8% for the third quarter of 2025. The year-to-date effective tax rate was 22.1% for 2026 compared to 21.1% for the same period in 2025. Credit Quality Eagle recorded a $1.9 million provision for credit losses for the third quarter of 2026, compared to a $343,000 provision for credit losses in the preceding quarter and a $62,000 provision for credit losses in the third quarter a year ago. The allowance for credit losses represented 224.0% of nonperforming loans at September 30, 2026, compared to 423.5% three months earlier and 430.4% a year earlier. Nonperforming loans were $8.7 million at September 30, 2026, compared to $4.2 million at June 30, 2026, and $4.1 million at September 30, 2025. The increase in nonperforming loans was primarily due to well collateralized agricultural loans. Net loan charge-offs totaled $29,000 in the third quarter of 2026, compared to $193,000 in the preceding quarter and $72,000 in the third quarter a year ago. The allowance for credit losses was $19.5 million, or 1.13% of total loans, at September 30, 2026, compared to $17.6 million, or 1.13% of total loans, at June 30, 2026, and $17.7 million, or 1.14% of total loans a year ago. Capital Management Eagle’s ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 6.90% at September 30, 2026, compared to 7.12% a year ago and 7.66% three months earlier. This ratio is a non-GAAP financial measure. For the most comparable GAAP financial measure, see “Reconciliation of Non-GAAP Financial Measures” below. The Bank’s Tier 1 capital to adjusted total average assets was 10.62% as of September 30, 2026. As of September 30, 2026, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. About the Company Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 30 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.” Forward Looking Statements This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as "believe," “will” "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions, expectations and anticipations; statements regarding our business plans, prospects, mergers, expense management initiatives, deposit costs, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management 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. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, including the U.S. direct involvement in war in the Middle East, either nationally or in our market areas, that are worse than expected; the impact of volatility in the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; 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; the emergence or continuation of widespread health emergencies or pandemics, including steps taken by governmental and other authorities to contain, mitigate and combat such emergencies or pandemics; 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. 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; limitations on Eagle’s ability to receive dividends from its subsidiaries; competition among banks, financial holding companies and other traditional and non-traditional financial service providers; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the volatility from quarter to quarter of mortgage banking income, whether due to interest rates, demand, the fair value of mortgage loans or other factors; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; possible changes in governmental monetary and fiscal policies; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; Eagle’s ability to assess and monitor the effect of evolving uses of artificial intelligence on its business and operations; the effects of any U.S. federal government shutdown, or closures or significant staff reductions in agencies regulating our business; our ability to navigate differing social, environmental, and sustainability concerns among governmental administrations, our stakeholders and other activists that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information. Use of Non-GAAP Financial Measures In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, this release, including the Additional Financial Information contains non-GAAP financial measures. Non-GAAP financial measures in this release include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common shareholders’ equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance, performance trends and financial condition, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts. The numerator for the core efficiency ratio is calculated by subtracting intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Eagle strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. A reconciliation of the GAAP and non-GAAP financial measures is presented below. Balance Sheet (Dollars in thousands, except per share data) (Unaudited) September 30, June 30, September 30, 2026 2026 2025 Assets: Cash and due from banks $ 21,943 $ 26,127 $ 25,061 Interest-bearing deposits in banks 2,916 2,833 4,454 Total cash and cash equivalents 24,859 28,960 29,515 Securities available-for-sale, at fair value 272,824 285,676 279,920 Federal Home Loan Bank ("FHLB") stock 12,097 5,001 5,200 Federal Reserve Bank ("FRB") stock 4,131 4,131 4,131 Mortgage loans held-for-sale, at fair value 12,812 15,972 10,364 Loans: Real estate loans: Residential 1-4 family 141,025 143,748 149,119 Residential 1-4 family construction 58,201 45,628 35,423 Commercial real estate 784,706 684,381 670,403 Commercial construction and development 104,558 98,851 113,455 Farmland 172,210 157,275 159,279 Other loans: Home equity 115,937 108,629 106,648 Consumer 21,096 21,459 25,558 Commercial 175,001 161,457 143,029 Agricultural 144,644 136,916 154,857 Total loans 1,717,378 1,558,344 1,557,771 Allowance for credit losses (19,490 ) (17,640 ) (17,740 ) Net loans 1,697,888 1,540,704 1,540,031 Accrued interest and dividends receivable 16,749 14,242 16,903 Mortgage servicing rights, net 14,832 14,885 15,131 Premises and equipment, net 99,539 99,947 102,032 Cash surrender value of life insurance, net 61,371 55,460 54,333 Goodwill 34,740 34,740 34,740 Core deposit intangible, net 2,562 2,798 3,599 Other assets 27,621 23,331 23,907 Total assets $ 2,282,025 $ 2,125,847 $ 2,119,806 Liabilities: Deposit accounts: Noninterest-bearing $ 453,774 $ 448,260 $ 429,064 Interest-bearing 1,348,328 1,341,944 1,323,115 Total deposits 1,802,102 1,790,204 1,752,179 Accrued expenses and other liabilities 46,498 41,628 42,713 FHLB advances and other borrowings 196,759 52,102 79,167 Other long-term debt, net 44,537 44,508 59,261 Total liabilities 2,089,896 1,928,442 1,933,320 Shareholders' Equity: Preferred stock (par value $0.01 per share; 1,000,000 shares authorized; no shares issued or outstanding) - - - Common stock (par value $0.01 per share; 20,000,000 shares authorized; 8,507,429 shares issued; 7,965,431, 7,965,431 and 7,952,177 shares outstanding at September 30, 2026, June 30, 2026, and September 30, 2025, respectively) 85 85 85 Additional paid-in capital 108,442 108,271 108,730 Unallocated common stock held by Employee Stock Ownership Plan ("ESOP") (3,008 ) (3,151 ) (3,581 ) Treasury stock, at cost (541,998, 541,998 and 555,252 shares at September 30, 2026, June 30, 2026, and September 30, 2025, respectively) (11,374 ) (11,374 ) (11,925 ) Retained earnings 118,748 116,910 107,947 Accumulated other comprehensive loss, net of tax (20,764 ) (13,336 ) (14,770 ) Total shareholders' equity 192,129 197,405 186,486 Total liabilities and shareholders' equity $ 2,282,025 $ 2,125,847 $ 2,119,806 Income Statement (Unaudited) Three Months Ended (Unaudited) Nine Months Ended September 30, (Dollars in thousands, except per share data) September 30, June 30, September 30, 2026 2026 2025 2026 2025 Interest and dividend income: Interest and fees on loans $ 25,518 $ 24,088 $ 25,213 $ 73,176 $ 72,975 Securities available-for-sale 2,323 2,297 2,322 6,835 7,170 FHLB and FRB dividends 136 112 225 386 721 Other interest income 21 114 74 434 187 Total interest and dividend income 27,998 26,611 27,834 80,831 81,053 Interest expense: Deposits 6,478 6,633 7,179 19,772 20,927 FHLB advances and other borrowings 1,085 393 1,144 1,890 4,229 Other long-term debt 448 447 823 1,341 2,162 Total interest expense 8,011 7,473 9,146 23,003 27,318 Net interest income 19,987 19,138 18,688 57,828 53,735 Provision for credit losses 1,859 343 62 2,481 1,142 Net interest income after provision for credit losses 18,128 18,795 18,626 55,347 52,593 Noninterest income: Service charges on deposit accounts 420 419 442 1,247 1,224 Mortgage banking, net 2,903 2,920 2,926 8,257 7,977 Interchange and ATM fees 740 711 691 2,079 1,954 Appreciation in cash surrender value of life insurance 421 407 384 1,190 1,127 Other noninterest income 613 560 274 2,222 1,258 Total noninterest income 5,097 5,017 4,717 14,995 13,540 Noninterest expense: Salaries and employee benefits 11,843 11,712 11,193 34,369 31,502 Occupancy and equipment expense 2,171 2,220 2,274 6,951 6,806 Data processing 1,455 1,332 1,326 4,042 3,961 Software subscriptions 582 610 680 1,763 2,053 Advertising 293 328 308 922 820 Amortization 239 249 288 759 906 Loan costs 416 388 382 1,169 1,108 Federal Deposit Insurance Corporation ("FDIC") insurance premiums 245 236 231 716 719 Professional and examination fees 703 420 401 1,505 1,312 Other noninterest expense 1,433 1,497 1,304 4,387 4,132 Total noninterest expense 19,380 18,992 18,387 56,583 53,319 Income before provision for income taxes 3,845 4,820 4,956 13,759 12,814 Provision for income taxes 831 1,105 1,326 3,046 2,708 Net income $ 3,014 $ 3,715 $ 3,630 $ 10,713 $ 10,106 Basic earnings per common share $ 0.38 $ 0.47 $ 0.47 $ 1.37 $ 1.30 Diluted earnings per common share $ 0.38 $ 0.47 $ 0.46 $ 1.36 $ 1.29 Basic weighted average shares outstanding 7,833,548 7,827,552 7,796,304 7,826,698 7,799,899 Diluted weighted average shares outstanding 7,873,976 7,862,465 7,828,570 7,862,007 7,822,825 ADDITIONAL FINANCIAL INFORMATION (Unaudited) (Dollars in thousands, except per share data) Three Months Ended or Years Ended September 30, June 30, September 30, 2026 2026 2025 Mortgage Banking Activity (For the quarter): Net gain on sale of mortgage loans $ 2,019 $ 2,225 $ 2,229 Net change in fair value of loans held-for-sale and derivatives 165 9 (22 ) Mortgage servicing income, net 719 686 719 Mortgage banking, net $ 2,903 $ 2,920 $ 2,926 Mortgage Banking Activity (Year-to-date): Net gain on sale of mortgage loans $ 5,922 $ 5,661 Net change in fair value of loans held-for-sale and derivatives 312 (32 ) Mortgage servicing income, net 2,023 2,348 Mortgage banking, net $ 8,257 $ 7,977 Performance Ratios (For the quarter): Return on average assets 0.55 % 0.71 % 0.68 % Return on average equity 6.06 % 7.57 % 7.94 % Yield on average interest earning assets 5.77 % 5.77 % 5.87 % Cost of funds 2.14 % 2.12 % 2.45 % Net interest margin 4.12 % 4.15 % 3.94 % Core efficiency ratio* 76.31 % 77.59 % 77.33 % Performance Ratios (Year-to-date): Return on average assets 0.67 % 0.64 % Return on average equity 7.26 % 7.50 % Yield on average interest earning assets 5.77 % 5.83 % Cost of funds 2.14 % 2.48 % Net interest margin 4.13 % 3.86 % Core efficiency ratio* 76.66 % 77.91 % * The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of intangible asset amortization, by the sum of net interest income and non-interest income. ADDITIONAL FINANCIAL INFORMATION (Dollars in thousands, except per share data) Asset Quality Ratios and Data: As of or for the Three Months Ended September 30, June 30, September 30, 2026 2026 2025 Nonaccrual loans $ 6,766 $ 2,961 $ 1,966 Loans 90 days past due and still accruing 1,937 1,204 2,156 Total nonperforming loans 8,703 4,165 4,122 Other real estate owned and other repossessed assets 43 70 86 Total nonperforming assets $ 8,746 $ 4,235 $ 4,208 Nonperforming loans / portfolio loans 0.51 % 0.27 % 0.26 % Nonperforming assets / assets 0.38 % 0.20 % 0.20 % Allowance for credit losses / portfolio loans 1.13 % 1.13 % 1.14 % Allowance for credit losses/ nonperforming loans 223.95 % 423.53 % 430.37 % Gross loan charge-offs for the quarter $ 37 $ 201 $ 80 Gross loan recoveries for the quarter $ 8 $ 8 $ 8 Net loan charge-offs for the quarter $ 29 $ 193 $ 72 September 30, June 30, September 30, 2026 2026 2025 Capital Data (At quarter end): Common shareholders' equity (book value) per share $ 24.12 $ 24.78 $ 23.45 Tangible book value per share** $ 19.44 $ 20.07 $ 18.63 Shares outstanding 7,965,431 7,965,431 7,952,177 Tangible common equity to tangible assets*** 6.90 % 7.66 % 7.12 % Other Information: Average investment securities for the quarter $ 282,446 $ 281,816 $ 280,683 Average investment securities year-to-date $ 281,611 $ 281,187 $ 287,176 Average loans for the quarter **** $ 1,626,026 $ 1,548,184 $ 1,581,510 Average loans year-to-date **** $ 1,566,863 $ 1,536,792 $ 1,554,547 Average earning assets for the quarter $ 1,924,273 $ 1,850,906 $ 1,879,801 Average earning assets year-to-date $ 1,874,136 $ 1,848,653 $ 1,859,177 Average total assets for the quarter $ 2,173,707 $ 2,095,992 $ 2,131,315 Average total assets year-to-date $ 2,120,942 $ 2,094,122 $ 2,109,454 Average deposits for the quarter $ 1,787,392 $ 1,781,870 $ 1,746,087 Average deposits year-to-date $ 1,782,807 $ 1,780,476 $ 1,708,460 Average equity for the quarter $ 198,830 $ 196,255 $ 182,822 Average equity year-to-date $ 196,824 $ 195,804 $ 179,699 ** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders' equity, less goodwill and core deposit intangible, by common shares outstanding. *** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders' equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible. **** Includes loans held for sale Reconciliation of Non-GAAP Financial Measures Efficiency Ratio (Unaudited) (Unaudited) (Dollars in thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2026 2026 2025 2026 2025 Calculation of Efficiency Ratio: Noninterest expense - efficiency ratio numerator $ 19,380 $ 18,992 $ 18,387 $ 56,583 $ 53,319 Net interest income 19,987 19,138 18,688 57,828 53,735 Noninterest income 5,097 5,017 4,717 14,995 13,540 Efficiency ratio denominator 25,084 24,155 23,405 72,823 67,275 Efficiency ratio (GAAP) 77.26 % 78.63 % 78.56 % 77.70 % 79.26 % Calculation of Core Efficiency Ratio: Noninterest expense $ 19,380 $ 18,992 $ 18,387 $ 56,583 $ 53,319 Intangible asset amortization (239 ) (249 ) (288 ) (759 ) (906 ) Core efficiency ratio numerator 19,141 18,743 18,099 55,824 52,413 Net interest income 19,987 19,138 18,688 57,828 53,735 Noninterest income 5,097 5,017 4,717 14,995 13,540 Core efficiency ratio denominator 25,084 24,155 23,405 72,823 67,275 Core efficiency ratio (non-GAAP) 76.31 % 77.59 % 77.33 % 76.66 % 77.91 % Tangible Book Value and Tangible Assets (Unaudited) (Dollars in thousands, except per share data) September 30, June 30, September 30, 2026 2026 2025 Tangible Book Value: Shareholders' equity $ 192,129 $ 197,405 $ 186,486 Goodwill and core deposit intangible, net (37,302 ) (37,538 ) $ (38,339 ) Tangible common shareholders' equity (non-GAAP) $ 154,827 $ 159,867 $ 148,147 Common shares outstanding at end of period 7,965,431 7,965,431 7,952,177 Common shareholders' equity (book value) per share (GAAP) $ 24.12 $ 24.78 $ 23.45 Tangible common shareholders' equity (tangible book value) per share (non-GAAP) $ 19.44 $ 20.07 $ 18.63 Tangible Assets: Total assets $ 2,282,025 $ 2,125,847 $ 2,119,806 Goodwill and core deposit intangible, net (37,302 ) (37,538 ) (38,339 ) Tangible assets (non-GAAP) $ 2,244,723 $ 2,088,309 $ 2,081,467 Tangible common shareholders' equity to tangible assets (non-GAAP) 6.90 % 7.66 % 7.12 % Contacts: Laura F. Clark, CEO (406) 457-4007 P. Darryl Rensmon, President and COO (406) 441-5005 Miranda J. Spaulding, EVP and CFO (406) 441-5010 Source: Eagle Bancorp Montana, Inc.