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Eagle Bancorp Montana Earns $3.4 Million, or $0.44 per Diluted Share, in the Fourth Quarter of 2024 and $9.8 Million, or $1.24 per Diluted Share for the Year 2024; Declares Quarterly Cash Dividend of $0.1425 Per Share

HELENA, Mont., Jan. 28, 2025 (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 $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and $2.2 million, or $0.28 per diluted share, in the fourth quarter of 2023. For the year ended December 31, 2024, net income was $9.8 million, or $1.24 per diluted share, compared to $10.1 million, or $1.29 per diluted share, in 2023.

Eagle’s board of directors declared a quarterly cash dividend of $0.1425 per share on January 23, 2025. The dividend will be payable March 7, 2025, to shareholders of record February 14, 2025. The current dividend represents an annualized yield of 3.93% based on recent market prices.

“Eagle’s fourth quarter operating results were highlighted by strong quarterly deposit growth, sound revenue generation, and net interest margin expansion,” said Laura F. Clark, President and CEO. “We continue to maintain a stable core deposit base, with non-CDs representing 72.4% of total deposits at year end. Additionally, we continue to maintain quality credit. While loan growth has moderated in recent quarters, we are anticipating steady single-digit loan growth in the year ahead.”

Fourth Quarter 2024 Highlights (at or for the three-month period ended December 31, 2024, except where noted):

  • Net income increased 26.7% to $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and increased 58.6% compared to $2.2 million, or $0.28 per diluted share, in the fourth quarter a year ago.
  • Net interest margin (“NIM”) was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point increase compared to the fourth quarter a year ago.
  • Revenues (net interest income before the provision for credit losses, plus noninterest income) increased 2.8% to $21.4 million in the fourth quarter of 2024, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago.
  • Total loans increased 2.4% to $1.52 billion, at December 31, 2024, compared to $1.48 billion a year earlier, and decreased 0.9% compared to $1.53 billion at September 30, 2024.
  • Total deposits increased $46.0 million or 2.8% to $1.68 billion at December 31, 2024, compared to a year earlier, and increased $30.7 million or 1.9%, compared to September 30, 2024.
  • The allowance for credit losses represented 1.11% of portfolio loans and 437.7% of nonperforming loans at December 31, 2024, compared to 1.11% of portfolio loans and 195.2% of nonperforming loans at December 31, 2023.
  • The Company’s available borrowing capacity was approximately $404.0 million at December 31, 2024, compared to $398.5 million at December 31, 2023.
 December 31, 2024December 31, 2023
(Dollars in thousands) Borrowings Outstanding  Remaining Borrowing Capacity  Borrowings Outstanding  Remaining Borrowing Capacity
Federal Home Loan Bank advances$140,930 $276,664 $175,737 $266,017
Federal Reserve Bank discount window   27,349    32,472
Correspondent bank lines of credit   100,000    100,000
Total$140,930 $404,013 $175,737 $398,489
     
  • The Company paid a quarterly cash dividend in the fourth quarter of $0.1425 per share on December 6, 2024, to shareholders of record November 15, 2024.

Balance Sheet Results
Eagle’s total assets increased 1.3% to $2.10 billion at December 31, 2024, compared to $2.08 billion a year ago, and decreased 2.0% compared to $2.15 billion three months earlier. The investment securities portfolio totaled $292.6 million at December 31, 2024, compared to $318.3 million a year ago, and $307.0 million at September 30, 2024.

Eagle originated $68.1 million in new residential mortgages during the quarter and sold $64.0 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.18%. This production compares to residential mortgage originations of $58.0 million in the preceding quarter with sales of $51.0 million and an average gross margin on sale of mortgage loans of approximately 3.31%. Mortgage volumes remain low as rates have continued to be elevated relative to rates on existing mortgages.

Total loans increased $36.2 million, or 2.4%, compared to a year ago, and decreased $14.0 million, or 0.9%, from three months earlier. Commercial real estate loans increased 6.1% to $646.0 million at December 31, 2024, compared to $608.7 million a year earlier. Commercial real estate loans were comprised of 71.4% non-owner occupied and 28.6% owner occupied at December 31, 2024. Agricultural and farmland loans increased 4.9% to $281.0 million at December 31, 2024, compared to $267.9 million a year earlier. Residential mortgage loans decreased 1.8% to $153.7 million, compared to $156.6 million a year earlier. Commercial loans increased 8.5% to $144.0 million, compared to $132.7 million a year ago. Commercial construction and development loans decreased 21.5% to $124.2 million, compared to $158.1 million a year ago. Home equity loans increased 12.2% to $97.5 million, residential construction loans increased 5.2% to $45.7 million, and consumer loans decreased 5.4% to $28.5 million, compared to a year ago.

“Similar to other community banks, our deposit mix has shifted towards higher yielding deposits over the last several quarters due to the higher interest rate environment. However, the recent Fed rate cuts have started to ease deposit pricing, and we anticipate this will continue as we move through this next rate cycle,” said Miranda Spaulding, CFO.

Total deposits increased to $1.68 billion at December 31, 2024, compared to $1.64 billion at December 31, 2023, and $1.65 billion at September 30, 2024. Noninterest-bearing checking accounts represented 24.9%, interest-bearing checking accounts represented 13.2%, savings accounts represented 12.5%, money market accounts comprised 21.8% and time certificates of deposit made up 27.6% of the total deposit portfolio at December 31, 2024. There were no brokered certificates at December 31, 2024, compared to $72.2 million at December 31, 2023, and $22.1 million at September 30, 2024. The average cost of total deposits was 1.71% in the fourth quarter of 2024, compared to 1.76% in the preceding quarter and 1.49% in the fourth quarter of 2023. The estimated amount of uninsured deposits was approximately $323.0 million, or 19% of total deposits, at December 31, 2024, compared to $307.0 million, or 18% of total deposits, at September 30, 2024.

Shareholders’ equity was $174.8 million at December 31, 2024, compared to $169.3 million a year earlier and $177.7 million three months earlier. Book value per share was $21.77 at December 31, 2024, compared to $21.11 a year earlier and $22.17 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 $16.88 at December 31, 2024, compared to $16.05 a year earlier and $17.23 three months earlier.

Operating Results
“The higher yields on interest earning assets combined with a lower cost of funds contributed to our 25 basis point NIM expansion during the quarter, compared to the preceding quarter,” said Spaulding. “We anticipate additional improvement in our cost of funds over the next several quarters.”

Eagle’s NIM was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point improvement compared to the fourth quarter a year ago. The interest accretion on acquired loans totaled $161,000 and resulted in a four basis-point increase in the NIM during the fourth quarter of 2024, compared to $167,000 and a three basis-point increase in the NIM during the preceding quarter. Funding costs for the fourth quarter of 2024 were 2.69%, compared to 2.89% in the third quarter of 2024 and 2.58% in the fourth quarter of 2023. Average yields on interest earning assets for the fourth quarter of 2024 increased to 5.70%, compared to 5.66% in the third quarter of 2024 and 5.36% in the fourth quarter a year ago. For the year, the NIM was 3.42% compared to 3.51% for 2023.

Net interest income, before the provision for credit losses, increased 6.3% to $16.8 million in the fourth quarter of 2024, compared to $15.8 million in the third quarter of 2024, and increased 10.5% compared to $15.2 million in the fourth quarter of 2023. For the year, net interest income increased 1.5% to $63.4 million, compared to $62.5 million in 2023.

Fourth quarter revenues increased 2.8% to $21.4 million, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago. For the year 2024, revenues were $81.2 million, compared to $85.2 million in 2023. The decrease compared to a year ago was largely due to lower volumes in mortgage banking activity.

Total noninterest income decreased 8.2% to $4.6 million in the fourth quarter of 2024, compared to $5.0 million in the preceding quarter, and decreased 21.3% compared to $5.8 million in the fourth quarter a year ago. The decrease compared to the preceding quarter was largely due to income from bank owned life insurance of $724,000 recorded during the third quarter of 2024. Net mortgage banking income, the largest component of noninterest income, totaled $2.8 million in the fourth quarter of 2024, compared to $2.6 million in the preceding quarter and $3.7 million in the fourth quarter a year ago. This decrease compared to the fourth quarter a year ago was largely driven by a decline in net gain on sale of mortgage loans, which was impacted by lower mortgage loan volumes. For the year, noninterest income decreased 21.8% to $17.8 million, compared to $22.7 million in 2023. Net mortgage banking income decreased 33.1% to $10.0 million in 2024, compared to $15.0 million in 2023. These decreases were driven by a decline in net gain on sale of mortgage loans.

Eagle’s fourth quarter noninterest expense was $17.7 million, an increase of 2.5% compared to $17.3 million in the preceding quarter and a 6.3% decrease compared to $18.9 million in the fourth quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the year ago quarter. For the year, noninterest expense decreased 3.9% to $69.3 million, compared to $72.1 million in 2023.

For the fourth quarter of 2024, the Company recorded income tax expense of $269,000. This compared to income tax expense of $529,000 in the preceding quarter and an income tax benefit of $315,000 in the fourth quarter of 2023. The effective tax rate for the year was 14.2% compared to 13.7% for the prior year and is due to the increase in proportion of tax-exempt income compared to pretax earnings, as well as tax credits from investments in low-income housing tax credit projects.

Credit Quality
Due to muted loan growth and positive economic factors within the CECL modeling, Eagle recorded a recapture in its provision for credit losses of $36,000 during the fourth quarter of 2024. This compared to a $277,000 provision for credit losses in the preceding quarter and $270,000 in the fourth quarter a year ago. The allowance for credit losses represented 437.7% of nonperforming loans at December 31, 2024, compared to 356.7% three months earlier and 195.2% a year earlier. Nonperforming loans were $3.9 million at December 31, 2024, $4.8 million at September 30, 2024, and $8.4 million a year earlier. Net loan charge-offs totaled $44,000 in the fourth quarter of 2024, compared to net loan charge-offs of $17,000 in the preceding quarter and net loan charge-offs of $10,000 in the fourth quarter a year ago. The allowance for credit losses was $16.9 million, or 1.11% of total loans, at December 31, 2024, compared to $17.1 million, or 1.12% of total loans, at September 30, 2024, and $16.4 million, or 1.11% of total loans, a year ago.

Capital Management
The 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 6.57% at December 31, 2024, up from 6.32% a year ago and 6.56% 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. As of December 31, 2024, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. The Bank’s Tier 1 capital to adjusted total average assets was 10.07% as of December 31, 2024.

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 29 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, 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, either nationally or in our market areas, that are worse than expected; the emergence or continuation of widespread health emergencies or pandemics, including but not limited to vaccine efficacy and immunization rates, new variants, steps taken by governmental and other authorities to contain, mitigate and combat the pandemic, adverse effects on our employees, customers and third-party service providers, the increase in cyberattacks in the current work-from-home environment; 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 impact of any new regulatory, policy or enforcement developments resulting from the change in U.S. presidential administration; 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; 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 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; 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; our ability to appropriately address social, environmental, and sustainability concerns 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, in this release, including the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common 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 acquisition costs and 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. Reconciliation of the GAAP and non-GAAP financial measures are presented below.

Balance Sheet   
(Dollars in thousands, except per share data) (Unaudited) 
 December 31,September 30,December 31,
 202420242023
    
Assets:   
Cash and due from banks$29,824 $22,954 $23,243 
Interest bearing deposits in banks 1,735  19,035  1,302 
Federal funds sold   200   
Total cash and cash equivalents 31,559  42,189  24,545 
Securities available-for-sale, at fair value 292,590  306,982  318,279 
Federal Home Loan Bank (“FHLB”) stock 7,778  11,218  9,191 
Federal Reserve Bank (“FRB”) stock 4,131  4,131  4,131 
Mortgage loans held-for-sale, at fair value 13,368  13,429  11,432 
Loans:   
Real estate loans:   
Residential 1-4 family 153,721  156,811  156,578 
Residential 1-4 family construction 45,701  52,217  43,434 
Commercial real estate 645,962  644,019  608,691 
Commercial construction and development 124,211  125,323  158,132 
Farmland 146,610  145,356  142,590 
Other loans:   
Home equity 97,543  93,646  86,932 
Consumer 28,513  29,445  30,125 
Commercial 144,039  143,190  132,709 
Agricultural 134,346  144,645  125,298 
Total loans 1,520,646  1,534,652  1,484,489 
Allowance for credit losses (16,850) (17,130) (16,440)
Net loans 1,503,796  1,517,522  1,468,049 
Accrued interest and dividends receivable 12,890  14,844  12,485 
Mortgage servicing rights, net 15,376  15,443  15,853 
Assets held-for-sale, at cost 960  257   
Premises and equipment, net 101,540  100,297  94,282 
Cash surrender value of life insurance, net 53,232  52,852  47,939 
Goodwill 34,740  34,740  34,740 
Core deposit intangible, net 4,499  4,834  5,880 
Other assets 26,631  26,375  28,860 
Total assets$2,103,090 $2,145,113 $2,075,666 
    
Liabilities:   
Deposit accounts:   
Noninterest bearing$419,211 $419,760 $418,727 
Interest bearing 1,262,017  1,230,752  1,216,468 
Total deposits 1,681,228  1,650,512  1,635,195 
Accrued expenses and other liabilities 47,018  38,593  36,462 
FHLB advances and other borrowings 140,930  219,167  175,737 
Other long-term debt, net 59,149  59,111  58,999 
Total liabilities 1,928,325  1,967,383  1,906,393 
    
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; 20,000,000 shares authorized;   
8,507,429 shares issued; 8,027,177, 8,016,784 and 8,016,784   
shares outstanding at December 31, 2024, September 30, 2024, and   
December 31, 2023, respectively 85  85  85 
Additional paid-in capital 108,334  109,040  108,819 
Unallocated common stock held by Employee Stock Ownership Plan (4,011) (4,154) (4,583)
Treasury stock, at cost (480,252, 490,645 and 490,645 shares at   
December 31, 2024, September 30, 2024, and December 31, 2023, respectively) (10,761) (11,124) (11,124)
Retained earnings 101,264  98,979  96,021 
Accumulated other comprehensive loss, net of tax (20,146) (15,096) (19,945)
Total shareholders’ equity 174,765  177,730  169,273 
Total liabilities and shareholders’ equity$2,103,090 $2,145,113 $2,075,666 
    

Income Statement (Unaudited)  (Unaudited)
(Dollars in thousands, except per share data)Three Months Ended Years Ended
 December 31,September 30,December 31, December 31,
 202420242023 20242023
Interest and dividend income:      
Interest and fees on loans$23,756 $23,802 $21,481  $92,282 $79,423 
Securities available-for-sale 2,475  2,598  2,790   10,428  11,376 
FRB and FHLB dividends 308  266  247   1,085  727 
Other interest income 148  94  23   416  89 
Total interest and dividend income 26,687  26,760  24,541   104,211  91,615 
Interest expense:      
Interest expense on deposits 7,216  7,190  6,090   27,838  17,857 
FHLB advances and other borrowings 2,005  3,084  2,569   10,211  8,562 
Other long-term debt 676  684  684   2,724  2,719 
Total interest expense 9,897  10,958  9,343   40,773  29,138 
Net interest income 16,790  15,802  15,198   63,438  62,477 
(Recapture) provision for credit losses (36) 277  270   518  1,456 
Net interest income after provision for credit losses 16,826  15,525  14,928   62,920  61,021 
       
Noninterest income:      
Service charges on deposit accounts 387  430  444   1,645  1,757 
Mortgage banking, net 2,818  2,602  3,718   10,014  14,970 
Interchange and ATM fees 675  662  663   2,540  2,524 
Appreciation in cash surrender value of life insurance 408  1,038  301   2,054  1,466 
Net loss on sale of available-for-sale securities (141)      (141) (222)
Other noninterest income 425  251  686   1,664  2,227 
Total noninterest income 4,572  4,983  5,812   17,776  22,722 
       
Noninterest expense:      
Salaries and employee benefits 9,830  9,894  11,359   39,715  42,973 
Occupancy and equipment expense 2,194  2,134  1,972   8,531  8,072 
Data processing 1,715  1,587  1,673   6,209  5,943 
Software subscriptions 576  511  519   2,127  2,064 
Advertising 466  277  445   1,312  1,375 
Amortization 337  337  386   1,391  1,587 
Loan costs 372  385  461   1,567  1,887 
FDIC insurance premiums 287  295  288   1,165  1,150 
Professional and examination fees 596  438  438   1,941  1,922 
Other noninterest expense 1,323  1,412  1,350   5,348  5,116 
Total noninterest expense 17,696  17,270  18,891   69,306  72,089 
       
Income before provision for income taxes 3,702  3,238  1,849   11,390  11,654 
Provision (benefit) for income taxes 269  529  (315)  1,612  1,598 
Net income$3,433 $2,709 $2,164  $9,778 $10,056 
       
Basic earnings per common share$0.44 $0.35 $0.28  $1.25 $1.29 
Diluted earnings per common share$0.44 $0.34 $0.28  $1.24 $1.29 
       
Basic weighted average shares outstanding 7,862,279  7,836,921  7,809,274   7,838,822  7,793,352 
       
Diluted weighted average shares outstanding 7,868,507  7,860,138  7,815,022   7,853,792  7,798,244 
       

ADDITIONAL FINANCIAL INFORMATION (Unaudited) 
(Dollars in thousands, except per share data)Three Months Ended or Years Ended
 December 31,September 30,December 31,
 202420242023
    
Mortgage Banking Activity (For the quarter):   
Net gain on sale of mortgage loans$2,036 $1,691 $2,845 
Net change in fair value of loans held-for-sale and derivatives (3) 159  (40)
Mortgage servicing income, net 785  752  913 
Mortgage banking, net$2,818 $2,602 $3,718 
    
Mortgage Banking Activity (Year-to-date):   
Net gain on sale of mortgage loans$6,741  $11,396 
Net change in fair value of loans held-for-sale and derivatives (5)  194 
Mortgage servicing income, net 3,278   3,380 
Mortgage banking, net$10,014  $14,970 
    
Performance Ratios (For the quarter):   
Return on average assets 0.65% 0.51% 0.42%
Return on average equity 8.12% 6.56% 5.68%
Yield on average interest earning assets 5.70% 5.66% 5.36%
Cost of funds 2.69% 2.89% 2.58%
Net interest margin 3.59% 3.34% 3.32%
Core efficiency ratio* 81.26% 81.47% 88.08%
    
Performance Ratios (Year-to-date):   
Return on average assets 0.47%  0.50%
Return on average equity 5.94%  6.33%
Yield on average interest earning assets 5.62%  5.14%
Cost of funds 2.76%  2.11%
Net interest margin 3.42%  3.51%
Core efficiency ratio* 83.62%  82.75%
    
* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of acquisition
costs and 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
 December 31,September 30,December 31,
 202420242023
    
Nonaccrual loans$3,227 $3,859 $8,395 
Loans 90 days past due and still accruing 623  944  26 
Total nonperforming loans 3,850  4,803  8,421 
Other real estate owned and other repossessed assets 45  4  5 
Total nonperforming assets$3,895 $4,807 $8,426 
    
Nonperforming loans / portfolio loans 0.25% 0.31% 0.57%
Nonperforming assets / assets 0.19% 0.22% 0.41%
Allowance for credit losses / portfolio loans 1.11% 1.12% 1.11%
Allowance for credit losses/ nonperforming loans 437.66% 356.65% 195.23%
Gross loan charge-offs for the quarter$51 $22 $11 
Gross loan recoveries for the quarter$7 $5 $1 
Net loan charge-offs for the quarter$44 $17 $10 
    
    
 December 31,September 30,December 31,
 202420242023
Capital Data (At quarter end):   
Common shareholders’ equity (book value) per share$21.77 $22.17 $21.11 
Tangible book value per share**$16.88 $17.23 $16.05 
Shares outstanding 8,027,177  8,016,784  8,016,784 
Tangible common equity to tangible assets*** 6.57% 6.56% 6.32%
    
Other Information:   
Average investment securities for the quarter$300,088 $305,730 $306,678 
Average investment securities year-to-date$306,538 $308,688 $328,533 
Average loans for the quarter ****$1,533,686 $1,547,246 $1,494,181 
Average loans year-to-date ****$1,523,384 $1,519,951 $1,436,672 
Average earning assets for the quarter$1,858,078 $1,874,669 $1,817,419 
Average earning assets year-to-date$1,850,120 $1,847,468 $1,780,727 
Average total assets for the quarter$2,107,357 $2,116,839 $2,062,267 
Average total assets year-to-date$2,092,051 $2,086,951 $2,015,586 
Average deposits for the quarter$1,671,653 $1,622,254 $1,626,598 
Average deposits year-to-date$1,636,390 $1,624,636 $1,603,861 
Average equity for the quarter$169,054 $165,162 $152,516 
Average equity year-to-date$164,591 $163,106 $158,807 
    
    
    
** 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     
       
Core Efficiency Ratio (Unaudited)  (Unaudited)
(Dollars in thousands)Three Months Ended Years Ended
 December 31,September 30,December 31, December 31,
 202420242023 20242023
Calculation of Core Efficiency Ratio:      
Noninterest expense$17,696 $17,270 $18,891  $69,306 $72,089 
Intangible asset amortization (337) (337) (386)  (1,391) (1,587)
Core efficiency ratio numerator 17,359  16,933  18,505   67,915  70,502 
       
Net interest income 16,790  15,802  15,198   63,438  62,477 
Noninterest income 4,572  4,983  5,812   17,776  22,722 
Core efficiency ratio denominator 21,362  20,785  21,010   81,214  85,199 
       
Core efficiency ratio (non-GAAP) 81.26% 81.47% 88.08%  83.62% 82.75%
       

Tangible Book Value and Tangible Assets(Unaudited)
(Dollars in thousands, except per share data)December 31,September 30,December 31,
 202420242023
Tangible Book Value:   
Shareholders’ equity$174,765 $177,730 $169,273 
Goodwill and core deposit intangible, net (39,239) (39,574)$(40,620)
Tangible common shareholders’ equity (non-GAAP)$135,526 $138,156 $128,653 
    
Common shares outstanding at end of period 8,027,177  8,016,784  8,016,784 
    
Common shareholders’ equity (book value) per share (GAAP)$21.77 $22.17 $21.11 
    
Tangible common shareholders’ equity (tangible book value)   
per share (non-GAAP)$16.88 $17.23 $16.05 
    
Tangible Assets:   
Total assets$2,103,090 $2,145,113 $2,075,666 
Goodwill and core deposit intangible, net (39,239) (39,574) (40,620)
Tangible assets (non-GAAP)$2,063,851 $2,105,539 $2,035,046 
    
Tangible common shareholders’ equity to tangible assets   
(non-GAAP) 6.57% 6.56% 6.32%
    

Contacts:Laura F. Clark, President and CEO
(406) 457-4007
Miranda J. Spaulding, SVP and CFO
(406) 441-5010
  

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