EBMT · Eagle Bancorp Montana, Inc.

Eagle Bancorp Montana reported first quarter 2026 net income of $4.0 million ($0.51 per diluted share), a decrease from $4.7 million ($0.60) in the prior quarter but an increase from $3.2 million ($0.41) in the same quarter last year. The sequential decline was driven by a 2.4% decrease in net interest income (before provision) to $18.7 million, as lower average yields on earning assets (5.76% vs. 5.83% in Q4 2025) and a $0.5 million drop in noninterest income (to $4.9 million) were only partially offset by lower funding costs (2.15% vs. 2.28%). However, net interest margin expanded three basis points sequentially to 4.11% and 37 basis points year-over-year, reflecting a meaningful reduction in deposit costs (average cost of total deposits fell to 1.52% from 1.67% a year ago) and disciplined expense management (noninterest expense flat at $18.2 million). The provision for credit losses increased to $279,000 from $39,000 in the prior quarter, while net charge-offs were modest at $49,000. Credit quality remained strong with nonperforming loans of $5.5 million and allowance coverage of 315.0%. Total deposits grew 5.7% year-over-year to $1.79 billion, with noninterest-bearing deposits comprising 24.5%. The company declared a quarterly cash dividend of $0.145 per share and authorized a new stock repurchase plan for up to 400,000 shares. Management expressed optimism for continued net interest margin expansion as deposit costs decline further.