What changed in Eagle Bancorp Montana, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of Eagle Bancorp Montana, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+254 added−248 removedSource: 10-K (2026-03-09) vs 10-K (2025-03-14)
Top changes in Eagle Bancorp Montana, Inc.'s 2025 10-K
254 paragraphs added · 248 removed · 190 edited across 6 sections
- Item 7. Management's Discussion & Analysis+113 / −117 · 100 edited
- Item 1A. Risk Factors+84 / −73 · 37 edited
- Item 1. Business+42 / −42 · 39 edited
- Item 5. Market for Registrant's Common Equity+11 / −12 · 10 edited
- Item 2. Properties+3 / −3 · 3 edited
Item 1. Business
Business — how the company describes what it does
39 edited+3 added−3 removed139 unchanged
Item 1. Business
Business — how the company describes what it does
39 edited+3 added−3 removed139 unchanged
2024 filing
2025 filing
Biggest changeThe Bank attempts to minimize this risk by maintaining conservative underwriting policies on such loans. We generally make home equity loans for not more than 85.0% of appraised value of the underlying real estate collateral, less the amount of any existing prior liens on the property securing the loan.
Biggest changeWe generally make home equity loans for not more than 85.0% of appraised value of the underlying real estate collateral, less the amount of any existing prior liens on the property securing the loan. 4 Table of Contents Consumer Loans As part of its strategy to invest in higher yielding shorter term loans, the Bank emphasized growth of its consumer lending portfolio in recent years.
We have established a series of loan committees to approve any loans which may exceed the lending authority of particular officers or branch managers. Three Directors of the Board are required for approval of any loan, or aggregation of loans to a single borrower, that currently exceeds $7.50 million.
We have established a series of loan committees to approve any loans which may exceed the lending authority of particular officers or branch managers. Three Directors of the Board are currently required for approval of any loan, or aggregation of loans to a single borrower, that exceeds $7.50 million.
If we are unable to effectively integrate and manage acquired or merged businesses or attract significant new business through our branching efforts, our financial performance may be negatively affected. 2 Table of Contents Market Areas We conduct business through our headquarters in Helena, Montana, in addition to 28 oth er full-service branches located in Ashland, Big Timber, Billings, Bozeman, Butte, Choteau, Culbertson, Denton, Dutton, Froid, Glasgow, Great Falls, Hamilton, Helena, Hinsdale, Livingston, Missoula, Sheridan, Three Forks, Townsend, Twin Bridges, Winifred and Wolf Point, Montana.
If we are unable to effectively integrate and manage acquired or merged businesses or attract significant new business through our branching efforts, our financial performance may be negatively affected. 2 Table of Contents Market Areas We conduct business through our headquarters in Helena, Montana, in addition to 29 oth er full-service branches located in Ashland, Big Timber, Billings, Bozeman, Butte, Choteau, Culbertson, Denton, Dutton, Froid, Glasgow, Great Falls, Hamilton, Helena, Hinsdale, Livingston, Missoula, Sheridan, Three Forks, Townsend, Twin Bridges, Winifred and Wolf Point, Montana.
The Bank was classified as “well-capitalized” under the prompt corrective action framework as of December 31, 2024. 9 Table of Contents Limitations on Capital Distributions A principal source of the parent holding company’s cash is from dividends received from the Bank, which are subject to government regulation and limitation.
The Bank was classified as “well-capitalized” under the prompt corrective action framework as of December 31, 2025. 9 Table of Contents Limitations on Capital Distributions A principal source of the parent holding company’s cash is from dividends received from the Bank, which are subject to government regulation and limitation.
(“PNC”), United Bankers’ Bank (“U BB”) and Texas Independent Bank ("TIB"). In addition, Eagle has a line of credit with Bell Bank. In January 2022, the Company completed the issuance of $40.00 million in aggregate principal amount of subordinated notes due in 2032 in a private placement transaction to certain institutional accredited investors and qualified buyers.
(“PNC”), United Bankers’ Bank (“UBB”) and Texas Independent Bank ("TIB"). In addition, Eagle has a line of credit with Bell Bank. In January 2022, the Company completed the issuance of $40.00 million in aggregate principal amount of subordinated notes due in 2032 in a private placement transaction to certain institutional accredited investors and qualified buyers.
Federal Securities Laws Eagle’s common stock is registered with the SEC under the Exchange Act. We are subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.
Federal Securities Laws Eagle’s class of common stock is registered with the SEC under the Exchange Act. We are subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Exchange Act.
Montana is one of the largest states in terms of land mass but ranks as one of the least populated states. According to U.S. Census Bureau data for 2020, it had a population of 1.08 millio n. Helena is Montana’s state capital and is the county seat of Lewis and Clark County.
Montana is one of the largest states in terms of land mass but ranks as one of the least populated states. According to U.S. Census Bureau data for 2020, it had a population of 1.08 million. Helena is Montana’s state capital and is the county seat of Lewis and Clark County.
The Bank currently has 30 full-service branc hes and 32 automated teller machines located in our market areas and we participate in the Money Pass® ATM network. We provide loan and deposit services to customers who are predominantly small businesses and individuals throughout Montana.
The Bank currently has 30 full-service branc hes and 32 a utomated teller machines located in our market areas and we participate in the Money Pass® ATM network. We provide loan and deposit services to customers who are predominantly small businesses and individuals throughout Montana.
Commercial business loans consist of business loans and lines of credit on a secured and unsecured basis and include agriculture production loans. Fee Income The Bank receives lending related fee income from a variety of sources. Its principal source of this income is from the origination and servicing of sold mortgage loans.
Commercial business loans consist of business loans and lines of credit on a secured and unsecured basis and include agriculture production loans. 3 Table of Contents Fee Income The Bank receives lending related fee income from a variety of sources. Its principal source of this income is from the origination and servicing of sold mortgage loans.
Our principal market areas can be characterized as markets with moderately increasing incomes, relatively low unemployment, increasing wealth (particularly in the growing resort areas such as Bozeman) and moderate population growth. 3 Table of Contents Lending Activities General The Bank originates residential 1-4 family loans held for investment and originated for sale in the secondary market.
Our principal market areas can be characterized as markets with moderately increasing incomes, relatively low unemployment, increasing wealth (particularly in the growing resort areas such as Bozeman) and moderate population growth. Lending Activities General The Bank originates residential 1-4 family loans held for investment and originated for sale in the secondary market.
As of December 31, 2024 , commercial real estate and commercial business loans constituted approximately 78.60% of total loans; ● Continue to emphasize the attraction and retention of core deposits; ● Seek opportunities where presented to acquire other institutions or expand our branch network through opening new branches and/or loan production offices; ● Maintain our strong asset quality; and ● Operate as a community-oriented financial institution that offers a broad array of financial products and services with focus on the customer experience.
As of December 31, 2025 , commercial real estate and commercial business loans constituted approximately 79.18% of total loans; ● Continue to emphasize the attraction and retention of core deposits; ● Seek opportunities where presented to acquire other institutions or expand our branch network through opening new branches and/or loan production offices; ● Maintain our strong asset quality; and ● Operate as a community-oriented financial institution that offers a broad array of financial products and services with focus on the customer experience.
The Bank's share of the total outstanding loan at December 31, 2024 was $13.81 million and it is collateralized by commercial real estate located in Bozeman, Montana. At December 31, 2024 , this loan is performing in accordance with its repayment terms. The Bank also lends funds for commercial construction and development.
The Bank's share of the total outstanding loan at December 31, 2025 was $13.53 million and it is collateralized by commercial real estate located in Bozeman, Montana. At December 31, 2025 , this loan was performing in accordance with its repayment terms. The Bank also lends funds for commercial construction and development.
Fees generated from mortgage loan servicing generally consist of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing for loans held by others. Mortgage loan servicing fees w ere $5.11 mi llion and $5.09 million for the years ended December 31, 2024 and 2023, respectively.
Fees generated from mortgage loan servicing generally consist of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing for loans held by others. Mortgage loan servicing fees w ere $4.98 mi llion and $5.11 million for the years ended December 31, 2025 and 2024, respectively.
This consisted of seven loans: four commercial real estate loans each secured by a single property, two commercial loans secured by equipment and one construction loan secured by a single property. The first commercial real estate loan had a principal balance of $1.35 million at December 31, 2024 .
This consisted of seven loans: four commercial real estate loans each secured by a single property, two commercial loans secured by equipment and one construction loan secured by a single property. The first commercial real estate loan had a principal balance of $1.25 million at December 31, 2025 .
At December 31, 2024 , we were in compliance with these regulations. Holding Company Regulation General Eagle is a bank holding company subject to regulatory oversight of the FRB. Eagle is required to register and file reports with the FRB and is subject to regulation and examination by the FRB.
At December 31, 2025 , we were in compliance with these regulations. Holding Company Regulation General Eagle is a bank holding company registered with, and subject to regulatory oversight of, the FRB. Eagle is required to file reports with the FRB and is subject to regulation and examination by the FRB.
As a result of unit banking, Montana has a significant number of independent financial institutions serving a single commun ity in a single location. While the state’s population is approximately 1.13 million people, there are 44 credit unions in Montana as well as one state-chartered thrift institution and 35 commercial banks as of December 31, 2024.
As a result of unit banking, Montana has a significant number of independent financial institutions serving a single commun ity in a single location. While the state’s population is approximately 1.14 million people, there are 44 credit unions in Montana as well as one state-chartered thrift institution and 34 commercial banks as of December 31, 2025.
In June 2020, the Company completed the issuance of $15.00 million in aggregate principal amount of subordinated notes due in 2030 in a private placement transaction to certain qualified institutional accredited investors. The notes bear interest at an annual fixed rate of 5.50%.
In June 2020, the Company completed the issuance of $15.00 million in aggregate principal amount of subordinated notes due in 2030 in a private placement transaction to certain qualified institutional accredited investors. The notes bore interest at an annual fixed rate of 5.50% payable semi-annually.
Other loan related fee income for late charges and other ancillary fees we re $1.30 million a nd $1.38 million for the years ended December 31, 2024 and 2023, respectively. Residential 1-4 Family Loans The Bank originates residential 1-4 family mortgage loans secured by property located in the Bank’s market areas.
Other loan related fee income for late charges and other ancillary fees we re $1.26 million a nd $1.13 million for the years ended December 31, 2025 and 2024, respectively. Residential 1-4 Family Loans The Bank originates residential 1-4 family mortgage loans secured by property located in the Bank’s market areas.
Generally, all commercial real estate loans that we originate are secured by property located in the state of Montana and within the market areas of the Bank. The Bank's largest single commercial real estate loan at December 31, 2024 was originated by the Bank and participated 44.10% to another bank in Alaska.
Generally, all commercial real estate loans that we originate are secured by property located in the state of Montana and within the market areas of the Bank. The Bank's largest single commercial real estate loan at December 31, 2025 was originated by the Bank and participated 39.47% to another bank in Alaska.
The seventh construction loan had a principal balance of $20.16 million as of December 31, 2024 . However, another bank is 50.0% participating in this loan for $10.08 million. At December 31, 2024 , these loans were performing in accordance with their terms. The Bank maintains the servicing for these loans.
The construction loan had a principal balance of $20.26 million as of December 31, 2025 . However, another bank is 50.0% participating in this loan for $10.13 million. At December 31, 2025 , these loans were performing in accordance with their terms. The Bank maintains the servicing for these loans.
Embracing equal employment opportunity and the diversity and inclusion of our workforce helps the Bank achieve its mission and each of us to live our core values. As of December 31, 2024, we ha d 372 full-time employees and 10 pa rt-time employees. The employees are not represented by a collective bargaining unit.
Embracing equal employment opportunity and the diversity and inclusion of our workforce helps the Bank achieve its mission and each of us to live our core values. As of December 31, 2025, we ha d 355 full-time employees and 30 part -time employees. The employees are not represented by a collective bargaining unit.
The total consideration paid was $16.44 million of Eagle common stock issued. In January 2018, the Company acquired TwinCo, Inc. (“TwinCo”). This acquisition included two branches in Madison County, Montana.
The total consideration paid was $16.44 million of Eagle common stock issued. In January 2018, the Company acquired TwinCo, Inc. (“TwinCo”). This acquisition included two branches in Madison County, Montana. The total consideration paid was $18.93 million and included cash consideration of $9.90 million and common stock issued of $9.03 million.
The total amount of loans in process of origination for sale into the secondary market with interest rate lock commitments was $10.16 million as of December 31, 2024.
The total amount of loans in process of origination for sale into the secondary market with interest rate lock commitments was $14.95 million as of December 31, 2025.
At December 31, 2024, the Bank's balance of 1-4 family mortgage loans was $153.72 million or 10.11% of total loans. The Bank generally originates residential 1-4 family mortgage loans in amounts of up to 80.0% of the lesser of the appraised value or the selling price of the mortgaged property without requiring private mortgage insurance.
At December 31, 2025, the Bank's balance of 1-4 family mortgage loans was $148.52 million or 9.78% of total loans. The Bank generally originates residential 1-4 family mortgage loans in amounts of up to 80.0% of the lesser of the appraised value or the selling price of the mortgaged property without requiring private mortgage insurance.
At December 31, 2024, the Bank ha d $2.02 billion in residential 1-4 family mortgage loans and $152.14 million in other loan categories sold with servicing retained. The Bank does not ordinarily purchase home mortgage loans from other financial institutions.
At December 31, 2025, the Bank ha d $1.98 billion in residential 1-4 family mortgage loans and $150.49 million in other loan categories sold with servicing retained. The Bank does not ordinarily purchase home mortgage loans from other financial institutions.
As of December 31, 2024 , the principal balance on the second commercial real estate loan was $1.38 million. The third commercial real estate loan had a principal balance of $11.02 million as of December 31, 2024 . However, another bank is 50.0% participating in this loan for $5.51 million.
As of December 31, 2025 , the principal balance on the second commercial real estate loan was $1.39 million. The third commercial real estate loan had a principal balance of $10.89 million as of December 31, 2025 . However, another bank is 50.0% participating in this loan for $5.45 million.
As of December 31, 2024 , the Bank’s limit to a single borrower was $34.40 million. Our largest aggregation of loans to one borrower was approximately $34.58 million at December 31, 2024 . The total amount subject to the lending limit at December 31, 2024 was $18.99 million.
As of December 31, 2025 , the Bank’s limit to a single borrower was $36.27 million. Our largest aggregation of loans to one borrower was approximately $34.43 million at December 31, 2025 . The total amount subject to the lending limit at December 31, 2025 was $18.86 million.
Commercial Loans Commercial business loans amounted to $144.04 million, or 9.47% of the Bank’s total loan portfolio at December 31, 2024 . Agricultural production loans amounted to $134.35 million, or 8.83% of the Bank’s total loan portfolio at December 31, 2024. The Bank’s commercial business loans are traditional business loans and are not secured by real estate.
Commercial Loans Commercial business loans amounted to $149.43 million, or 9.84% of the Bank’s total loan portfolio at December 31, 2025 . Agricultural production loans amounted to $134.46 million, or 8.85% of the Bank’s total loan portfolio at December 31, 2025. The Bank’s commercial business loans are traditional business loans and are not secured by real estate.
As of December 31, 2024, consumer loans totaled $28.51 million or 1.88% of the Bank’s total loan portfolio. These loans consist primarily of auto loans, RV loans, boat loans, personal loans and credit lines and deposit account loans. Consumer loans are originated in the Bank’s market areas and generally have maturities of up to 7 years.
These loans consist primarily of auto loans, RV loans, boat loans, personal loans and credit lines and deposit account loans. Consumer loans are originated in the Bank’s market areas and generally have maturities of up to 7 years.
Commercial construction and development loans accounted for $124.21 million or 8.17% of the Bank’s total loan portfolio at December 31, 2024. In addition, the bank originates loans secured by farm and ranch real estate.
Commercial construction and development loans accounted for $120.29 million or 7.92% of the Bank’s total loan portfolio at December 31, 2025. In addition, the bank originates loans secured by farm and ranch real estate. Farmland loans accounted for $162.58 million or 10.70% of the Bank’s total loan portfolio at December 31, 2025.
The following table reflects our deposit market share and ranking by county: County Total Market Share Percentage (1) Deposit Market Share Rank (1) Broadwater, MT 100.00 % 1 Cascade, MT 1.54 8 Fergus, MT 6.36 5 Gallatin, MT 4.68 8 Lewis and Clark, MT 14.93 3 Madison, MT 37.65 2 Missoula, MT 1.56 10 Park, MT 9.94 4 Ravalli, MT 3.22 6 Roosevelt, MT 49.60 2 Rosebud, MT 7.68 3 Silver Bow, MT 13.12 4 Sweet Grass, MT 40.22 1 Teton, MT 18.80 2 Valley, MT 51.52 1 Yellowstone, MT 1.10 7 (1) Source: FDIC.gov-data as o f June 30, 2024.
The following table reflects our deposit market share and ranking by county: County Total Market Share Percentage (1) Deposit Market Share Rank (1) Broadwater, MT 100.00 % 1 Cascade, MT 2.23 8 Fergus, MT 6.39 5 Gallatin, MT 4.78 7 Lewis and Clark, MT 14.72 3 Madison, MT 35.95 2 Missoula, MT 1.76 8 Park, MT 10.15 4 Ravalli, MT 3.30 7 Roosevelt, MT 54.00 1 Rosebud, MT 4.82 3 Silver Bow, MT 12.62 4 Sweet Grass, MT 41.41 1 Teton, MT 19.61 2 Valley, MT 52.01 1 Yellowstone, MT 1.49 7 (1) Source: FDIC.gov-data as of June 30, 2025.
Starting July 1, 2025, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be the three-month term SOFR plus a spread of 509.0 basis points.
Starting July 1, 2025, interest accrued at a floating rate per annum equal to a benchmark rate, which was three-month term SOFR plus a spread of 509.0 basis points, payable quarterly. The floating rate was 9.39% for the three months ended September 30, 2025.
Residential 1-4 family construction loans accounted for $45.70 million or 3.01% of the Bank’s total loan portfolio at December 31, 2024. Commercial Real Estate Loans The Bank originates commercial real estate loans including loans on multi-family dwellings. Commercial real estate loans made up 42.48% of the Bank’s total loan portfolio, or $645.96 million at December 31, 2024 .
Residential 1-4 family construction loans accounted for $35.28 million or 2.32% of the Bank’s total loan portfolio at December 31, 2025. Commercial Real Estate Loans The Bank originates commercial real estate loans including loans on multi-family dwellings. Commercial real estate loans made up 41.87% of the Bank’s total loan portfolio, or $635.97 million at December 31, 2025 .
Farmland loans accounted for $146.61 million or 9.64% of the Bank’s total loan portfolio at December 31, 2024. 4 Table of Contents Home Equity Loans The Bank also originates home equity loans. These loans are secured by the borrowers’ primary residence, but are typically subject to a prior lien, which may or may not be held by the Bank.
Home Equity Loans The Bank also originates home equity loans. These loans are secured by the borrowers’ primary residence, but are typically subject to a prior lien, which may or may not be held by the Bank. At December 31, 2025, $108.07 million or 7.11% of our total loans were home equity loans.
We offer mortgage loans, the majority of which are sold on the secondary market with loan servicing retained. We believe that this focus will enable us to continue to grow our franchise, while maintaining our commitment to customer service, high asset quality and sustained net earnings.
We believe that this focus will enable us to continue to grow our franchise, while maintaining our commitment to customer service, high asset quality and sustained net earnings.
The Bank offers fixed rate, fixed payment home equity loans as well as variable and fixed rate home equity lines of credit. Fixed rate home equity loans typically have terms of no longer than 15 years.
Borrowers may use the proceeds from the Bank’s home equity loans for many purposes, including home improvement, debt consolidation or other purchasing needs. The Bank offers fixed rate, fixed payment home equity loans as well as variable and fixed rate home equity lines of credit. Fixed rate home equity loans typically have terms of no longer than 15 years.
The fourth commercial real estate loan had a principal balance of $601,000 as of December 31, 2024 . The fifth commercial loan had a principal balance of $55,000 as of December 31, 2024 . The sixth commercial loan had a principal balance of $12,000 as of December 31, 2024 .
The fourth commercial real estate loan had a principal balance of $586,000 as of December 31, 2025 . The first commercial loan had a principal balance of $49,000 as of December 31, 2025 . The second commercial loan had a principal balance of $8,000 as of December 31, 2025 .
The total consideration paid was $18.93 million and included cash consideration of $9.90 million and common stock issued of $9.03 millio Business Strategy Our principal strategy is to continue our profitability through building a diversified loan portfolio and operating the Bank as a full-service community bank that offers both retail and commercial loan and deposit products in all of its markets.
Business Strategy Our principal strategy is to continue our profitability through building a diversified loan portfolio and operating the Bank as a full-service community bank that offers both retail and commercial loan and deposit products in all of its markets. We offer mortgage loans, the majority of which are sold on the secondary market with loan servicing retained.
Consumer Loans As part of its strategy to invest in higher yielding shorter term loans, the Bank emphasized growth of its consumer lending portfolio in recent years. This portfolio includes personal loans secured by collateral other than real estate, unsecured personal loans and lines of credit and loans secured by deposits held by the Bank.
This portfolio includes personal loans secured by collateral other than real estate, unsecured personal loans and lines of credit and loans secured by deposits held by the Bank. As of December 31, 2025, consumer loans totaled $24.42 million or 1.61% of the Bank’s total loan portfolio.
Removed
At December 31, 2024, $97.54 million or 6.41% of our total loans were home equity loans. Borrowers may use the proceeds from the Bank’s home equity loans for many purposes, including home improvement, debt consolidation or other purchasing needs.
Added
The Bank attempts to minimize this risk by maintaining conservative underwriting policies on such loans.
Removed
In addition to the assessment for deposit insurance, through 2019, institutions were required to make payments on bonds issued in the late 1980s by the Financing Corporation to recapitalize a predecessor deposit insurance fund.
Added
The notes were subject to redemption at the option of the Company on or after July 1, 2025. On October 1, 2025, the Company redeemed the notes utilizing its line of credit with a correspondent bank to finance the redemption payment.
Removed
Eagle obtained the necessary approvals from the FRB and the Montana Division of Banking and Financial Institutions before acquiring each of its previous acquisitions.
Added
The Company has drawn $15.00 million on the line of credit, which has a two-year maturity and has a variable interest rate equal to 0.50% below the prime rate as published in the Wall Street Journal.
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
37 edited+47 added−36 removed91 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
37 edited+47 added−36 removed91 unchanged
2024 filing
2025 filing
Biggest changeIn particular, interest rates are highly sensitive to many factors that are beyond our control, including global, domestic and local economic conditions and the policies of various governmental and regulatory agencies and, specifically, the Federal Reserve. Throughout 2023 the Federal Open Market Committee (“FOMC”) raised the target range for the federal funds rate on four separate occasions, citing inflationary pressures.
Biggest changeAny contraction of economic activity, including an economic recession, may adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings. In particular, interest rates are highly sensitive to many factors that are beyond our control, including global, domestic and local economic conditions and the policies of various governmental and regulatory agencies and, specifically, the Federal Reserve.
Given the lack of empirical data on the credit and other financial risks posed by climate change, it is impossible to predict how climate change may impact our financial condition and operations; however, as a banking organization, the physical effects of climate change on the Bank may present certain unique risks.
Given the lack of empirical data on the credit and other financial risks posed by climate change, it is impossible to predict how climate change may impact our financial condition and operations; however, as a banking organization, the physical effects of climate change may present certain unique risks to the Company.
If we are unable to successfully integrate the businesses we acquire, our business, financial condition and results of operations may be materially adversely affected. 15 Table of Contents Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis.
If we are unable to successfully integrate the businesses we acquire, our business, financial condition and results of operations may be materially adversely affected. Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis.
Our business and our financial condition and results of operations could be adversely affected by continued soundness concerns regarding financial institutions generally and our counterparties specifically and limitations resulting from further governmental action in an effort to stabilize or provide additional regulation of the financial system as impact of excessive deposit withdrawals. 17 Table of Contents
Our business and our financial condition and results of operations could be adversely affected by continued soundness concerns regarding financial institutions generally and our counterparties specifically and limitations resulting from further governmental action in an effort to stabilize or provide additional regulation of the financial system as impact of excessive deposit withdrawals.
Moreover, if prepayments are greater than expected, the cash we receive over the life of the mortgage loans would be reduced. An increased size of our MSR portfolio could result in us carrying significant asset balances. This could result in a reduction in our liquidity and cause a reduction in our capital ratios.
Moreover, if prepayments are greater than expected, the cash received over the life of the mortgage loans would be reduced. An increased size of our MSR portfolio could result in us carrying significant asset balances. This could result in a reduction in our liquidity and cause a reduction in our capital ratios.
While we believe we will have the executive management resources and internal systems in place to successfully manage our future growth, there can be no assurance growth opportunities will be available or that we will successfully manage our growth. We may be unsuccessful in integrating the operations of the business we have acquired or expect to acquire in the future.
While we believe we will have the executive management resources and internal systems in place to successfully manage our future growth, there can be no assurance growth opportunities will be available or that we will successfully manage our growth. 15 Table of Contents We may be unsuccessful in integrating the operations of the business we have acquired or expect to acquire in the future.
In addition, the fair values of securities could decline if the overall economy and the financial condition of some of the issuers deteriorates and there is limited liquidity for these securities. 13 Table of Contents Changes in our accounting policies or in accounting standards could materially affect how we report our financial condition and results of operations.
In addition, the fair values of securities could decline if the overall economy and the financial condition of some of the issuers deteriorates and there is limited liquidity for these securities. Changes in our accounting policies or in accounting standards could materially affect how we report our financial condition and results of operations.
Technology and other changes are allowing parties to complete financial transactions through alternative methods that historically have involved banks. For example, consumers can now maintain funds that would have historically been held as bank deposits in brokerage accounts, mutual funds or general purpose reloadable prepaid cards.
Consumers may decide not to use banks to complete their financial transactions. Technology and other changes are allowing parties to complete financial transactions through alternative methods that historically have involved banks. For example, consumers can now maintain funds that would have historically been held as bank deposits in brokerage accounts, mutual funds or general purpose reloadable prepaid cards.
The aggregate cost of our FHLB common stock as of December 31, 2024 was $7.78 million. FHLB common stock is not a marketable security and can only be redeemed by the FHLB. FHLB’s may be subject to accounting rules and asset quality risks that could materially lower their regulatory capital.
The aggregate cost of our FHLB common stock as of December 31, 2025 was $2.65 million. FHLB common stock is not a marketable security and can only be redeemed by the FHLB. FHLB’s may be subject to accounting rules and asset quality risks that could materially lower their regulatory capital.
We may not be able to continue paying quarterly dividends commensurate with recent levels given that the ability to pay dividends on our common stock depends on a variety of factors.
There can be no assurance we will be able to continue paying dividends on our common stock at recent levels. We may not be able to continue paying quarterly dividends commensurate with recent levels given that the ability to pay dividends on our common stock depends on a variety of factors.
These factors, as well as recent volatility in certain commodity prices could adversely impact the ability of those to whom we have made farmland and agricultural production loans to perform under the terms of their borrowing arrangements with us, which in turn could result in credit losses and adversely affect our business, financial condition and results of operations. 16 Table of Contents Consumers may decide not to use banks to complete their financial transactions.
These factors, as well as recent volatility in certain commodity prices could adversely impact the ability of those to whom we have made farmland and agricultural production loans to perform under the terms of their borrowing arrangements with us, which in turn could result in credit losses and adversely affect our business, financial condition and results of operations.
A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations. We depend on the services of our executive officers and other key employees.
A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations.
The combination of these impacts along with other impacts, could cause us to not have sufficient liquidity or capital. At December 31, 2024 , our MSR asset had a fair value of $15.38 mi llion. All income related to retained servicing, including changes in the value of the MSR asset, is included in noninterest income.
The combination of these impacts along with other impacts, could cause us to not have sufficient liquidity or capital. At December 31, 2025 , our MSR asset had a fair value of $20.30 mil lion. All income related to retained servicing, including changes in the value of the MSR asset, is included in noninterest income.
Furthermore, because of the inherent limitations of any system of internal control over financial reporting, including the possibility of human error, the circumvention or overriding of controls and fraud, even effective internal controls may not prevent or detect all misstatements. We have identified a material weakness in our internal control over financial reporting.
Furthermore, because of the inherent limitations of any system of internal control over financial reporting, including the possibility of human error, the circumvention or overriding of controls and fraud, even effective internal controls may not prevent or detect all misstatements.
We earn a significant portion of our noninterest income through sales of residential mortgages in the secondary market . We rely on the mortgage secondary market for some of our liquidity. Our mortgage banking activities provide a significant portion of our noninterest income. We originate and sell mortgage loans, inc luding $211.78 mil lion of mortgage loans sold during 2024.
We earn a significant portion of our noninterest income through sales of residential mortgages in the secondary market . We rely on the mortgage secondary market for some of our liquidity. Our mortgage banking activities provide a significant portion of our noninterest income. We originate and sell mortgage loans, including $230.90 mil lion of mortgage loans sold during 2025.
The impairment testing process considers a variety of factors, including the current market price of our common shares, the estimated net present value of our assets and liabilities and information concerning the terminal valuation of similarly situated insured depository institutions.
We are required to test our goodwill for impairment on a periodic basis. The impairment testing process considers a variety of factors, including the current market price of our common shares, the estimated net present value of our assets and liabilities and information concerning the terminal valuation of similarly situated insured depository institutions.
If we are unable to continue to sell loans in the secondary market or we experience a period of low mortgage activity, our noninterest income as well as our ability to fund, and thus originate, additional mortgage loans may be adversely affected, which could have a material adverse effect on our business, financial condition or results of operations. 14 Table of Contents There can be no assurance we will be able to continue paying dividends on our common stock at recent levels.
If we are unable to continue to sell loans in the secondary market or we experience a period of low mortgage activity, our noninterest income as well as our ability to fund, and thus originate, additional mortgage loans may be adversely affected, which could have a material adverse effect on our business, financial condition or results of operations.
As of December 31, 2024 , we had $280.96 million in farmland and agricultural production loans, including $146.61 million in farmland loans, and $134.35 mil lion in agricultural production loans. Repayment of farmland and agricultural production loans depends primarily on the successful raising and feeding of livestock or planting and harvest of crops and marketing the harvested commodity.
As of December 31, 2025 , we had $297.04 million in farmland and agricultural production loans, including $162.58 million in farmland loans, and $134.46 mil lion in agricultural production loans. Repayment of farmland and agricultural production loans depends primarily on the successful raising and feeding of livestock or planting and harvest of crops and marketing the harvested commodity.
Farmland and agriculture production lending presents unique credit risk. As of December 31, 2024 , approxima tely 18.48% of our total gross loan portfolio was comprised of farmland and agricultural production loans.
Farmland and agriculture production lending presents unique credit risk. As of December 31, 2025 , approximately 19.55% of our total gross loan portfolio was comprised of farmland and agricultural production loans.
Commercial real estate and commercial business loans generally have more risk than the residential real estate (1-4 family) loans we originate.
We intend to continue our recent emphasis on originating commercial real estate and commercial business loans. Commercial real estate and commercial business loans generally have more risk than the residential real estate (1-4 family) loans we originate.
We measure and carry all of our residential MSR assets using the fair value measurement method. Fair value is determined as the present value of estimated future net servicing income, calculated based on a number of variables, including assumptions about the likelihood of prepayment by borrowers.
Fair value is determined as the present value of estimated future net servicing income, calculated based on a number of variables, including assumptions about the likelihood of prepayment by borrowers.
While we currently do not anticipate liquidity constraints of the kind that caused certain other financial services institutions to fail or require external support, constraints on our liquidity could occur as a result of unanticipated deposit withdrawals because of market distress or our inability to access other sources of liquidity, including through the capital markets due to unforeseen market dislocations or interruptions.
Constraints on our liquidity could occur as a result of unanticipated deposit withdrawals because of market distress or our inability to access other sources of liquidity, including through the capital markets due to unforeseen market dislocations or interruptions.
In recent years, governments across the world have entered into international agreements to attempt to reduce global temperatures, in part by limiting greenhouse gas emissions. Although the U.S. rejoined the Paris Agreement, effective as of February 19, 2021, and the U.S.
In recent years, governments across the world have entered into international agreements to attempt to reduce global temperatures, in part by limiting greenhouse gas emissions.
Risks Related to Our Business We hold certain intangible assets that could be classified as impaired in the future . If these assets are considered to be either partially or fully impaired in the future, our earnings and the book values of these assets would decrease . As a result of our branch and whole bank acquisitions we record goodwill.
If these assets are considered to be either partially or fully impaired in the future, our earnings and the book values of these assets would decrease . As a result of our branch and whole bank acquisitions we record goodwill. Our consolidated balance sheet at December 31, 2025 included goodw ill of $34.74 m illion.
These changes are beyond our control, can be hard to predict and could materially impact how we report our results of operations and financial condition. We could also be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements in material amounts.
These changes are beyond our control, can be hard to predict and could materially impact how we report our results of operations and financial condition.
A continuation of recent turmoil in our industry, and responsive measures to manage it, could have an adverse effect on our financial position or results of operations. Over the past year, several financial services institutions have failed or required outside liquidity support—in many cases, as a result of the inability of the institutions to obtain needed liquidity.
A continuation of recent turmoil in our industry, and responsive measures to manage it, could have an adverse effect on our financial position or results of operations.
Current trends of rising interest rates have resulted in an increased valuation of the MSR asset, however one of the principal risks associated with MSR assets is that in a declining interest rate environment, they will likely lose a substantial portion of their value as a result of higher than anticipated prepayments.
While interest rates began to decline in September 2025 and the fair value of the MSR asset remains above its carrying value, one of the principal risks associated with MSR assets is that in a declining interest rate environment they may lose a substantial portion of their value as a result of higher‑than‑anticipated prepayments.
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including escalating military tension between Russia and Ukraine, the Middle East, terrorism and other geopolitical events. Our success depends, to a certain extent, upon global, domestic and local economic and political conditions, as well as governmental monetary policies.
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including the recent military actions in Iran and the Middle East, escalating military tension between Russia and Ukraine, terrorism and other geopolitical events.
The loss of these revenue streams and the lower cost of deposits as a source of funds could have a material adverse effect on our financial condition and results of operations. Rights Related to the Legal and Regulatory Environment We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
Rights Related to the Legal and Regulatory Environment We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.
Congress, state legislatures and federal and state regulatory agencies have continued to propose and advance numerous legislative and regulatory initiatives seeking to mitigate the effects of climate change, each of which may result in the imposition of taxes and fees, the required purchase of emission credits, and the implementation of significant operational changes, which may require us to expend significant capital and incur compliance, operating, maintenance and remediation costs.
In addition to the challenges of managing conflicting expectations of legislatures, agencies, and regulators with respect to climate change, measures designed to mitigate or bring awareness to climate change may result in the imposition of taxes and fees, the required purchase of emission credits, and the implementation of significant operational changes, each of which may require the Company to expend significant capital and incur compliance, operating, maintenance and remediation costs.
Because we have increased our commercial real estate and commercial business loan originations, our credit risk has increased and continued downturns in the local real estate market or economy could adversely affect our earnings. We intend to continue our recent emphasis on originating commercial real estate and commercial business loans.
We could also be required to apply a new or revised standard retroactively, resulting in our restating prior period financial statements in material amounts. 13 Table of Contents Because we have increased our commercial real estate and commercial business loan originations, our credit risk has increased and continued downturns in the local real estate market or economy could adversely affect our earnings.
Also, in the event there shall occur an event of default on any of our debt instruments, we would be unable to pay any dividends on our common stock. Our business strategy includes significant growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
Consequently, cash‑based activities, including further investments in the Bank or support of the Bank, could require borrowings or additional issuances of common or preferred stock. Our business strategy includes significant growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively.
As a result of our mortgage servicing business, which we may expand in the future, we have a portfolio of mortgage servicing rights (“MSR”) assets. An MSR is the right to service a mortgage loan - collect principal, interest and escrow amounts - for a fee.
Changes in interest rates may change the value of our mortgage servicing rights portfolio, which may increase the volatility of our earnings . As a result of our mortgage servicing business, which we may expand in the future, we have a portfolio of mortgage servicing rights (“MSR”) assets.
Many of these competitors (whether regional or national institutions) have substantially greater resources and lending limits than we have and may offer certain services that we do not or cannot provide. Our profitability depends upon our ability to successfully compete in our market areas.
We compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking firms operating locally and elsewhere. Many of these competitors (whether regional or national institutions) have substantially greater resources and lending limits than we have and may offer certain services that we do not or cannot provide.
Conditions such as changes in interest rates, money supply, levels of employment and other factors beyond our control may have a negative impact on economic activity. Any contraction of economic activity, including an economic recession, may adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings.
Our success depends, to a certain extent, upon global, domestic and local economic and political conditions, as well as governmental monetary policies. Conditions such as changes in interest rates, money supply, levels of employment and other factors beyond our control may have a negative impact on economic activity.
Changes in interest rates also affect the current fair value of our interest-earning securities portfolio. Generally, the value of securities moves inversely with changes in interest rates. We may be impacted by the retirement of London Interbank Offered Rate (“LIBOR”) as a reference rate.
Changes in interest rates also affect the current fair value of our interest-earning securities portfolio. Generally, the value of securities moves inversely with changes in interest rates. Strong competition may limit growth and profitability. Competition in the banking and financial services industry is intense.
We are subject to physical and financial risks associated with climate change and other weather and natural disaster impacts. The current and anticipated effects of climate change are creating an increasing level of concern for the state of the global environment. As a result, political and social attention to the issue of climate change has increased.
In addition to regulatory and investor expectations on environmental matters in general, the current and anticipated effects of climate change are creating, for some stakeholders, an increasing level of concern for the state of the global environment.
Removed
The last Federal Funds Target rate change occurred on July 26, 2023, and the FOMC has since adopted a cautious approach as inflationary pressures have moderated but remain uncertain. Forecasts for 2024 indicate potential interest rate reductions, but persistent inflation may either delay reductions or may call for further rate increases by the FOMC.
Added
It is currently expected that, during 2026, the Federal Open Market Committee of the Federal Reserve (“FOMC”) will continue to closely monitor interest rates, in part to manage the rate of inflation to its preferred level.
Removed
The tightening of the Federal Reserve’s monetary policies, including increases in the target range for the federal funds rate as well as the conclusion of the Federal Reserve’s tapering of asset purchases, together with ongoing economic and geopolitical instability, increases the risk of an economic recession.
Added
In the fourth quarter of 2025, the FOMC decreased the target range for the federal funds rate to a range of 3.50 percent to 3.75 percent, following a series of significant increases beginning in 2022. If the FOMC further alters the targeted federal funds rates, overall interest rates likely will continue to change, which may impact the entire national economy.
Removed
Although forecasts have varied, the potential of slowing economic growth and persistent inflation could lead to the contraction of the U.S. gross domestic output in 2024. Any such downturn, especially domestically and in the regions in which we operate, may adversely affect our asset quality, deposit levels, loan demand and results of operations.
Added
Changes in interest rates directly impact our net interest income and also may affect the demand for loans and the value of our fixed-rate investment securities. These effects from interest rate changes or from other sustained economic stress or a recession, among other matters, could have a material adverse effect on our business, financial condition, liquidity and results of operations.
Removed
Many of our lending products, securities, derivatives, and other financial transactions utilize a benchmark rate, such as LIBOR, to determine the applicable interest rate or payment amount. The U.K. Financial Conduct Authority and the ICE Benchmark Administration have announced that the publication of the most commonly used U.S.
Added
Our profitability depends upon our ability to successfully compete in our market areas. Expectations around Environmental, Social and Governance practices, as well as climate change, and related legislative and regulatory initiatives may result in additional risk and operational changes and expenditures that could significantly impact our business.
Removed
Dollar LIBOR tenors will cease to be provided or cease to be representative after June 30, 2023. The publication of all other LIBOR settings ceased to be provided or ceased to be representative as of December 31, 2021. The Adjustable Interest Rate (LIBOR) Act (LIBOR Act), enacted in March 2022, provides a statutory framework to replace U. S.
Added
Companies are facing increased scrutiny from customers, regulators and other stakeholders with respect to their environmental, social and governance ("ESG") practices and disclosures. Institutional investors, and investor advocacy groups, in particular, are increasingly focused on these matters, and expectations in many of these areas can vary widely.
Removed
Dollar LIBOR with a benchmark rate based on the Secured Overnight Financing Rate (“SOFR”) for contracts governed by U.S. law that have no fallbacks or fallbacks that would require the use of a poll or LIBOR-based rate, and in December 2022, the FRB adopted rules which identify different SOFR-based replacement rates for derivative contracts, for cash instruments such as floating-rate notes and preferred stock, for consumer loans, for certain government-sponsored enterprise contracts and for certain asset-backed securities.
Added
For example, certain federal and state laws and regulations related to ESG issues may include provisions that conflict with other laws and regulations, which may increase our costs or limit our ability to conduct business in certain jurisdictions.
Removed
We continue to monitor market developments and regulatory updates related to the cessation of LIBOR. As the transition from LIBOR is ongoing, there continues to be uncertainty as to the ultimate effect of the transition on the financial markets for LIBOR-linked financial instruments.
Added
In particular, there is an increasing number of anti‑ESG initiatives in the United States that may conflict with other regulatory requirements or our various stakeholders’ expectations. Such divergent, sometimes conflicting, views on ESG‑related matters increase the risk that any action or lack thereof by the Company on such matters will be perceived negatively by some stakeholders.
Removed
The discontinuation of a benchmark rate, changes in a benchmark rate, or changes in market perceptions of the acceptability of a benchmark rate, including LIBOR, could, among other things, adversely affect the value of and return on certain of our financial instruments or products, result in changes to our risk exposures, or require renegotiation of previous transactions.
Added
In addition, increased ESG related compliance costs could result in increases to our overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards, and fluctuations in or conflicts among these standards, could negatively impact our reputation, ability to do business with certain partners, and our stock price.
Removed
In addition, any such discontinuation or changes, whether actual or anticipated, could result in market volatility, increased compliance, legal and operational costs, and risks associated with customer disclosures and contract negotiations. Although the LIBOR Act includes safe harbors if the FRB-identified SOFR-based replacement rate is selected, these safe harbors are untested.
Added
New government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure.
Removed
As a result, and despite the enactment of the LIBOR Act, for the most commonly used U.S. Dollar LIBOR settings, the use or selection of a successor rate could also expose us to risks associated with disputes with customers and other market participants in connection with implementing LIBOR fallback provisions. Strong competition may limit growth and profitability.
Added
In the United States, certain state legislatures and state regulatory agencies have proposed and advanced numerous legislative and regulatory initiatives seeking to mitigate the effects of climate change, some of which conflict with other state or federal initiatives or sentiments.
Removed
Competition in the banking and financial services industry is intense. We compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, and brokerage and investment banking firms operating locally and elsewhere.
Added
For example, weather disasters, shifts in local climates and other disruptions related to climate change may adversely affect the value of real properties securing our loans, which could diminish the value of our loan portfolio.
Removed
The physical risks of climate change include discrete events, such as flooding, hurricanes, tornadoes, and wildfires, and longer-term shifts in climate patterns, such as extreme heat, sea level rise, and more frequent and prolonged drought. Physical risks may alter the Company’s strategic direction in order to mitigate certain financial risks.
Added
Natural disasters, geopolitical events, public health crises and other catastrophic events beyond our control could adversely affect us.
Removed
Our operations are located in Montana and are susceptible to severe weather events including severe droughts, wildfires, floods, severe winter storms and tornadoes. Any of these, or any other severe weather event, could cause disruption to our operations and could have a material adverse effect on our overall business, results of operations or financial condition.
Added
Natural disasters such as hurricanes, floods, tornados, wildfires, extreme weather conditions and other acts of nature, geopolitical events such as the recent military actions in Iran and the Middle East, those involving civil unrest, changes in government regimes, terrorism or military conflict, pandemics and other public health crises, and other catastrophic events could adversely affect our business operations and those of our customers, counterparties and service providers, and cause substantial damage and loss to real and personal property, including damage to or destruction of mortgaged properties or our own banking facilities and offices.
Removed
We have taken certain preemptive measures that we believe will mitigate these adverse effects; however, such measures cannot prevent the disruption that a catastrophic drought, wildfire, tornado or other severe weather event could cause to the markets that we serve and any resulting adverse impact on our customers, such as hindering our borrowers’ ability to timely repay their loans, diminishing the value of any collateral held by us, interrupting supply chains, causing significant property damage, causing us to incur additional expense or resulting in a loss of revenue, and affecting the stability of our deposit base.
Added
Natural disasters, geopolitical events, public health crises and other catastrophic events, or concerns about the occurrence of any such events, could impair our borrowers’ ability to service their loans, decrease the level and duration of deposits by customers, erode the value of loan collateral, including mortgaged properties, result in an increase in the amount of our non‑performing loans and a higher level of non‑performing assets, including real estate owned, net charge‑offs and provision for loan losses, lead to other operational difficulties and impair our ability to manage our business, which could materially and adversely affect our business, financial condition, results of operations and the value of our common stock.
Removed
The severity and impact of future droughts, wildfires, floods, tornadoes and other weather-related events are difficult to predict and may be exacerbated by global climate change.
Added
We also could be adversely affected if our key personnel or a significant number of our employees were to become unavailable due to a public health crisis (such as an outbreak of a contagious disease), natural disaster, war, act of terrorism, accident or other reason.
Removed
Climate change may worsen the frequency and severity of future droughts, wildfires, floods, tornadoes and other extreme weather-related events that could cause disruption to our business and operations. Chronic results of climate change such as shifting weather patterns could also cause disruption to our business and operations.
Added
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, acts of terrorism or other geopolitical events. 12 Table of Contents Risks Related to Our Business We hold certain intangible assets that could be classified as impaired in the future .
Removed
Climate change may also result in new and/or more stringent regulatory requirements for the Company, which could materially affect the Company’s results of operations by requiring the Company to take costly measures to comply with any new laws or regulations related to climate change that may be forthcoming.
Added
The adoption of artificial intelligence tools by us and our third‑party vendors and service providers may increase the risk of errors, omissions, unfair treatment or fraudulent behavior by our employees, clients or counterparties, or other third parties.
Removed
New regulations, shift in customer behaviors, supply chain collapse or breakthrough technologies that accelerate the transition to a lower carbon economy may negatively affect certain sectors and borrowers in our loan portfolio, impacting their ability to timely repay their loans or decreasing the value of any collateral held by us. 12 Table of Contents The emergence or continuation of widespread health emergencies or pandemics could have a material adverse effect on our business, results of operations and financial condition, and such effects will depend on future developments, which are highly uncertain and are difficult to predict.
Added
Our adoption of artificial intelligence, including generative artificial intelligence, machine learning and similar tools and technologies that collect, aggregate, analyze or generate data or other materials or content (collectively, “AI”), for limited internal use has increased our efficiency, and we expect to continue to adopt such tools as appropriate.
Removed
Pandemics could adversely impact our workforce and operations and the operations of our borrowers, customers and business partners. As a result, we may experience financial losses due to a number of operational factors impacting us or our borrowers, customers or business partners.
Added
In addition, we expect our third‑party vendors and service providers to increasingly develop and incorporate AI into their product offerings faster than we are able to do so independently.
Removed
These factors may be prevalent for a significant period of time and may adversely affect our business, results of operations and financial condition even after an outbreak has subsided.
Added
There are significant risks involved in utilizing AI and no assurance can be provided that our or our third‑party vendors’ or service providers’ use of AI will enhance our or our third‑party vendors’ or service providers’ products or services or produce the intended results.
Removed
The extent to which an outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and are difficult to predict, including, but not limited to, the duration and spread of the outbreak and its variants, its severity, the actions to contain the virus or treat its impact, the effectiveness of vaccination programs for the virus, vaccination rates, and how quickly and to what extent normal economic and operating conditions can resume.
Added
The adoption and incorporation of such tools can lead to concerns around safety and soundness, fair access to financial services, fair treatment of consumers and compliance with applicable laws and regulations.
Removed
Even after an outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of the virus’s global economic impact, including the availability of credit, adverse impacts on our liquidity and any recession that has occurred or may occur in the future.
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Item 2. Properties
Properties — owned and leased real estate
3 edited+0 added−0 removed0 unchanged
Item 2. Properties
Properties — owned and leased real estate
3 edited+0 added−0 removed0 unchanged
2024 filing
2025 filing
Biggest changeOccupancy Type Locations Owned Leased Total Locations Ashland, Montana 1 - 1 Big Timber, Montana 1 - 1 Billings, Montana 3 - 3 Bozeman, Montana 2 1 3 Butte, Montana 1 - 1 Choteau, Montana 1 - 1 Culbertson, Montana 1 - 1 Denton, Montana 1 - 1 Dutton, Montana 1 - 1 Froid, Montana 1 - 1 Glasgow, Montana 1 - 1 Great Falls, Montana - 1 1 Hamilton, Montana 1 - 1 Helena, Montana 5 - 5 Hinsdale, Montana 1 - 1 Livingston, Montana 1 - 1 Missoula, Montana 1 - 1 Sheridan, Montana 1 - 1 Three Forks, Montana 1 - 1 Townsend, Montana 1 - 1 Twin Bridges, Montana 1 - 1 Winifred, Montana - 1 1 Wolf Point, Montana 1 - 1 Total 28 3 31 Management believes all locations are in good condition and meet the operating needs of the Company.
Biggest changeOccupancy Type Locations Owned Leased Total Locations Ashland, Montana 1 - 1 Big Timber, Montana 1 - 1 Billings, Montana 3 - 3 Bozeman, Montana 2 - 2 Butte, Montana 1 - 1 Choteau, Montana 1 - 1 Culbertson, Montana 1 - 1 Denton, Montana 1 - 1 Dutton, Montana 1 - 1 Froid, Montana 1 - 1 Glasgow, Montana 1 - 1 Great Falls, Montana - 1 1 Hamilton, Montana 1 - 1 Helena, Montana 5 - 5 Hinsdale, Montana 1 - 1 Livingston, Montana 1 - 1 Missoula, Montana 2 - 2 Sheridan, Montana 1 - 1 Three Forks, Montana 1 - 1 Townsend, Montana 1 - 1 Twin Bridges, Montana 1 - 1 Winifred, Montana - 1 1 Wolf Point, Montana 1 - 1 Total 29 2 31 Management believes all locations are in good condition and meet the operating needs of the Company.
For additional information regarding the Company's premises and equipment and lease obligation s, see Note 5 to th e Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data".
For additional information regarding the Company's premises and equipment and lease obligation s, see Note 5 to th e Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data". 19 Table of Contents
ITEM 2. PROPERTIES. The Company's executive office is located at 1400 Prospect Avenue in Helena, Montana. The following table provides information on the Company's 31 properties as of December 31, 2024, including locations by city, as well as whether they are owned or leased.
ITEM 2. PROPERTIES. The Company's executive office is located at 1400 Prospect Avenue in Helena, Montana. The following table provides information on the Compan y's 31 pro perties as of December 31, 2025, including locations by city, as well as whether they are owned or leased.
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
10 edited+1 added−2 removed3 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
10 edited+1 added−2 removed3 unchanged
2024 filing
2025 filing
Biggest changeNo shares were purchased during the third or fourth quarter of 2023, or during the first of second quarter of 2024 under this plan. The pl an expired on May 1, 2024. On April 21, 2022, Eagle's Board of Directors (the "Board") authorized the repurchase of up to 400,000 shares of its common stock.
Biggest changeUnder the 2024 Repurchase Plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. No shares were purchased during the second or third quarter of 2024 under this plan. During the fourth quarter of 2024, 25,000 shares were purchased under this plan at an average price of $16.74 per share.
The pl an expires on May 1, 2025. On April 20, 2023, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2023. Under the plan, shares may be purchased by the Company on the open market or in privately negotiated transactions.
On April 20, 2023, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2023 (the "2023 Repurchase Plan"). Under the 2023 Repurchase Plan, shares may be purchased by the Company on the open market or in privately negotiated transactions.
The present and future dividend policy of our bank subsidiary is subject to the discretion of its Board. Our subsidiary bank is not obligated to pay dividends. On April 18, 2024, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2024.
The present and future dividend policy of our bank subsidiary is subject to the discretion of its Board. Our subsidiary bank is not obligated to pay dividends. On April 24, 2025, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2025 (the "2025 Repurchase Plan").
Under the plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. The extent to which the company repurchases its shares and the timing of such repurchase will depend on market conditions and other corporate considerations.
Under the 2025 Repurchase Plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. The extent to which the company repurchases its shares and the timing of such repurchase will depend on market conditions and other corporate considerations. No shares were purchased during the second or third quarter of 2025 under this plan.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the Nasdaq Global Market under the symbol “EBMT.” At the close of business on December 31, 2024, there were 8,507,429 shares of common stock outstanding, held by approximately 939 shareholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the Nasdaq Global Market under the symbol “EBMT.” At the close of business on December 31, 2025, there we re 8,507,429 s hares of common stock outstanding, held by approximatel y 899 sh areholders of record.
The closing price of the common stock on December 31, 2024, was $15.33 per share.
The closing price of the common stock on December 31, 2025, was $19.90 per share.
Total Number Maximum of Shares Number of Purchased Shares that Total as Part of May Yet Be Number of Average Publicly Purchased Shares Price Paid Announced Plans Under the Plans Purchased Per Share or Programs or Programs October 1, 2024 through October 31, 2024 - $ - - - November 1, 2024 through November 30, 2024 - - - - December 1, 2024 through December 31, 2024 25,000 16.74 25,000 375,000 Total 25,000 $ 16.74 25,000 During January 2025, the Company purchased 50,000 shares at an average price of $15.11 under its repurchase plan.
Total Number Maximum of Shares Number of Purchased Shares that Total as Part of May Yet Be Number of Average Publicly Purchased Shares Price Paid Announced Plans Under the Plans Purchased Per Share or Programs or Programs October 1, 2025 through October 31, 2025 - $ - - 400,000 November 1, 2025 through November 30, 2025 25,000 16.38 25,000 375,000 December 1, 2025 through December 31, 2025 - - - 375,000 Total 25,000 $ 16.38 25,000 On April 18, 2024, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2024 (the "2024 Repurchase Plan").
The following table summarized the Company's purchase of its common stock for the year ended December 31, 2024 under this plan.
The plan expires on May 1, 2026. The following table summarized the Company's purchase of its common stock for the three months ended December 31, 2025 under the 2025 Repurchase Plan.
The extent to which the company repurchases its shares and the timing of such repurchase will depend on market conditions and other corporate considerations. During the second quarter of 2023, 17,901 shares were purchased under this plan at an average price of $12. 89.
During the second quarter of 2023, 17,901 shares were purchased under this plan at an average price of $12. 89 per share. No shares were purchased during the third or fourth quarter of 2023, or during the first or second quarter of 2024 under this plan.
During the second quarter of 2022, 5,000 shares were purchased under this plan at an average price of $19.75. During the third quarter of 2022, 99,517 shares were purchased under this plan at an average price of $19.45. During the fourth quarter of 2022, 6,608 shares were purchased under this plan at an average price of $18.80.
During the first quarter of 2025, 50,000 shares were purchased under this plan at an average price of $15.11 per share. During the second quarter of 2025, 25,000 shares were purchased under this plan at an average price of $16.34 per share. The plan expired on May 1, 2025.
Removed
Under the plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. The extent to which the company repurchases its shares and the timing of such repurchase will depend upon market conditions and other corporate considerations.
Added
The pl an expired on May 1, 2024. 20 Table of Contents ITEM 6. [RESERVED]
Removed
No shares were purchased during the first quarter of 2023 under this plan. The plan expired on April 21, 2023. 21 Table of Contents ITEM 6. [RESERVED]
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
1 edited+0 added−0 removed0 unchanged
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
1 edited+0 added−0 removed0 unchanged
2024 filing
2025 filing
Biggest changeITEM 6. [ RESERVED ] 22 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 37 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 37 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 37 ITEM 9A. CONTROLS AND PROCEDURES 38
Biggest changeITEM 6. [ RESERVED ] 21 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 21 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 36 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 36 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 36 ITEM 9A. CONTROLS AND PROCEDURES 37
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
100 edited+13 added−17 removed70 unchanged
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
100 edited+13 added−17 removed70 unchanged
2024 filing
2025 filing
Biggest changeDecember 31, 2024 One Year or Less One to Five Years Five to Ten Years After Ten Years Total Investment Securities Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Approximate Market Value Weighted Average Yield (Dollars in Thousands) Securities available-for-sale: U.S. government and agency obligations $ - $ - $ 263 $ 6.28 $ 3,200 $ 4.76 $ 1,732 $ 6.98 $ 5,195 $ 5,195 5.57 % U.S. treasury obligations 4,932 2.79 26,394 1.34 15,587 $ 1.66 - $ - 46,913 46,913 1.60 Municipal obligations 2,590 2.85 5,627 3.41 50,335 $ 2.72 59,325 $ 3.22 117,877 117,877 2.81 Corporate obligations 998 3.00 - - 3,164 $ 4.98 - $ - 4,162 4,162 4.51 Mortgage-backed securities 34 3.40 2,166 3.33 2,499 $ 3.38 23,536 $ 4.39 28,235 28,235 4.21 Collateralized mortgage obligations 2,388 1.00 3,374 7.34 778 $ 3.12 76,083 $ 3.72 82,623 82,623 3.72 Asset-backed securities - - - - - - 7,585 $ 6.07 7,585 7,585 6.07 Total securities available-for-sale $ 10,942 2.43 % $ 37,824 2.33 % $ 75,563 2.71 % $ 168,261 3.78 % $ 292,590 $ 292,590 3.16 % 24 Table of Contents Lending Activities The following table includes the composition of the Bank’s loan portfolio by loan category: December 31, 2024 2023 2022 2021 2020 Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total (Dollars in thousands) Real estate loans: Residential 1-4 family (1) $ 153,721 10.11 % $ 156,578 10.55 % $ 135,947 10.03 % $ 101,180 10.82 % $ 110,802 13.14 % Residential 1-4 family construction 45,701 3.01 43,434 2.93 59,756 4.41 45,635 4.88 46,290 5.49 Total residential 1-4 family 199,422 13.12 200,012 13.48 195,703 14.44 146,815 15.70 157,092 18.63 Commercial real estate 645,962 42.48 608,691 40.99 539,070 39.76 410,568 43.92 316,668 37.56 Commercial construction and development 124,211 8.17 158,132 10.65 151,145 11.15 92,403 9.88 65,281 7.74 Farmland 146,610 9.64 142,590 9.61 136,334 10.06 67,005 7.17 65,918 7.82 Total commercial real estate 916,783 60.29 909,413 61.25 826,549 60.97 569,976 60.97 447,867 53.12 Total real estate loans 1,116,205 73.41 1,109,425 74.73 1,022,252 75.41 716,791 76.67 604,959 71.75 Other loans: Home equity 97,543 6.41 86,932 5.86 74,271 5.48 51,748 5.54 56,563 6.71 Consumer 28,513 1.88 30,125 2.03 27,609 2.04 18,455 1.97 20,168 2.39 Commercial 144,039 9.47 132,709 8.94 127,255 9.39 101,535 10.86 109,209 12.95 Agricultural 134,346 8.83 125,298 8.44 104,036 7.68 46,335 4.96 52,242 6.20 Total commercial loans 278,385 18.30 258,007 17.38 231,291 17.07 147,870 15.82 161,451 19.15 Total other loans 404,441 26.59 375,064 25.27 333,171 24.59 218,073 23.33 238,182 28.25 Total loans 1,520,646 100.00 % 1,484,489 100.00 % 1,355,423 100.00 % 934,864 100.00 % 843,141 100.00 % Deferred loan fees (2) - - (1,745 ) (1,725 ) (2,038 ) Allowance for credit losses (3) (16,850 ) (16,440 ) (14,000 ) (12,500 ) (11,600 ) Total loans, net $ 1,503,796 $ 1,468,049 $ 1,339,678 $ 920,639 $ 829,503 (1) Excludes loans held-for-sale.
Biggest changeDecember 31, 2025 One Year or Less After One Year to Five Years After Five Years to Ten Years After Ten Years Total Investment Securities Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Weighted Average Yield Amortized Cost Approximate Market Value Fair Value (Dollars in Thousands) Securities available-for-sale: U.S. government and agency obligations $ - 0.00 % $ 190 5.88 % $ 2,766 4.04 % $ 1,223 6.44 % $ 4,179 4.83 % $ 4,155 U.S. treasury obligations - - 29,116 1.34 18,549 1.66 - - 47,665 1.46 44,308 Municipal obligations 1,509 3.00 12,021 2.47 55,634 2.55 58,305 3.36 127,469 2.92 118,324 Corporate obligations - - 2,000 8.04 - - - - 2,000 8.04 1,971 Mortgage-backed securities - - 2,171 3.24 2,329 3.41 22,722 4.08 27,222 3.96 26,494 Collateralized mortgage obligations 1,874 6.99 7,212 6.73 228 2.97 74,593 3.45 83,907 3.81 79,661 Asset-backed securities - - - - - - 6,720 5.42 6,720 5.42 6,779 Total securities available-for-sale $ 3,383 5.21 % $ 52,710 2.68 % $ 79,506 2.42 % $ 163,563 3.61 % $ 299,162 3.15 % $ 281,692 23 Table of Contents Lending Activities The following table includes the composition of the Bank’s loan portfolio by loan category: December 31, 2025 2024 2023 2022 2021 Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total Amount Percent of Total (Dollars in thousands) Real estate loans: Residential 1-4 family (1) $ 148,515 9.78 % $ 153,721 10.11 % $ 156,578 10.55 % $ 135,947 10.03 % $ 101,180 10.82 % Residential 1-4 family construction 35,278 2.32 45,701 3.01 43,434 2.93 59,756 4.41 45,635 4.88 Total residential 1-4 family 183,793 12.10 199,422 13.12 200,012 13.48 195,703 14.44 146,815 15.70 Commercial real estate 635,970 41.87 645,962 42.48 608,691 40.99 539,070 39.76 410,568 43.92 Commercial construction and development 120,289 7.92 124,211 8.17 158,132 10.65 151,145 11.15 92,403 9.88 Farmland 162,580 10.70 146,610 9.64 142,590 9.61 136,334 10.06 67,005 7.17 Total commercial real estate 918,839 60.49 916,783 60.29 909,413 61.25 826,549 60.97 569,976 60.97 Total real estate loans 1,102,632 72.59 1,116,205 73.41 1,109,425 74.73 1,022,252 75.41 716,791 76.67 Other loans: Home equity 108,073 7.11 97,543 6.41 86,932 5.86 74,271 5.48 51,748 5.54 Consumer 24,424 1.61 28,513 1.88 30,125 2.03 27,609 2.04 18,455 1.97 Commercial 149,431 9.84 144,039 9.47 132,709 8.94 127,255 9.39 101,535 10.86 Agricultural 134,459 8.85 134,346 8.83 125,298 8.44 104,036 7.68 46,335 4.96 Total commercial loans 283,890 18.69 278,385 18.30 258,007 17.38 231,291 17.07 147,870 15.82 Total other loans 416,387 27.41 404,441 26.59 375,064 25.27 333,171 24.59 218,073 23.33 Total loans 1,519,019 100.00 % 1,520,646 100.00 % 1,484,489 100.00 % 1,355,423 100.00 % 934,864 100.00 % Deferred loan fees, net (2) - - - (1,745 ) (1,725 ) Allowance for credit losses (3) (17,370 ) (16,850 ) (16,440 ) (14,000 ) (12,500 ) Total loans, net $ 1,501,649 $ 1,503,796 $ 1,468,049 $ 1,339,678 $ 920,639 (1) Excludes loans held-for-sale.
Our investment securities generally include U.S. government and agency obligations, U.S. treasury obligations, Small Business Administration pools, municipal securities, corporate obligations, mortgage-backed securities (“MBSs”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABSs”), all with varying characteristics as to rate, maturity and call provisions. There were no held-to-maturity investment securities included in the investment portfolio at December 31, 2024 or 2023.
Our investment securities generally include U.S. government and agency obligations, U.S. treasury obligations, Small Business Administration pools, municipal securities, corporate obligations, mortgage-backed securities (“MBSs”), collateralized mortgage obligations (“CMOs”) and asset-backed securities (“ABSs”), all with varying characteristics as to rate, maturity and call provisions. There were no held-to-maturity investment securities included in the investment portfolio at December 31, 2025 or 2024.
The BTFP offers loans of up to one year in length to institutions pledging collateral eligible for purchase by FRB such as U.S. treasuries, agency securities, and mortgage-backed securities. These assets are valued at par. The Company did not utilize the program during 2023. In March of 2024, the Company accessed borrowings through the BTFP.
The BTFP offered loans of up to one year in length to institutions pledging collateral eligible for purchase by FRB such as U.S. treasuries, agency securities, and mortgage-backed securities. These assets are valued at par. The Company did not utilize the program during 2023. In March of 2024, the Company accessed borrowings through the BTFP.
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 expense, and potential capital infusions into subsidiaries.
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 allowance is based on information known at the time of the review. Changes in factors underlying the assessment for subsequent evaluations of the loan portfolio could have a material impact on the amount of the allowance that is necessary and the amount of provision to be charged against earnings.
The allowance is based on information known at the time of the review. Changes in factors underlying the assessment for subsequent evaluations of the loan portfolio could have a material impact on the amount of the allowance that is necessary to increase the amount of provision to be charged against earnings.
The Bank’s strong capital position helps to mitigate its interest rate risk exposure. As of December 31, 2024 , the Company’s regulatory capital was in excess of all applicable regulatory requirements and is deemed “well capitalized” pursuant to State of Montana and FRB rules.
The Bank’s strong capital position helps to mitigate its interest rate risk exposure. As of December 31, 2025 , the Company’s regulatory capital was in excess of all applicable regulatory requirements and is deemed “well capitalized” pursuant to State of Montana and FRB rules.
Such evaluation includes a review of all loans for which full collectability may not be reasonably assured and considers, among other matters: the estimated market value of the underlying collateral of problem loans; prior loss experience; economic conditions; and overall portfolio quality. 29 Table of Contents Provisions for, or adjustments to, estimated losses are included in earnings in the period they are established.
Such evaluation includes a review of all loans for which full collectability may not be reasonably assured and considers, among other matters: the estimated market value of the underlying collateral of problem loans; prior loss experience; economic conditions; and overall portfolio quality. Provisions for, or adjustments to, estimated losses are included in earnings in the period they are established.
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 90 days divided by total assets.
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.
The Bank has a strong mortgage lending focus, with a large portion of its loan originations represented by single-family residential mortgages, which has enabled it 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 a strong mortgage lending focus, with a large portion of its loan originations repres ented by single-family residential mortgages, which has enabled it 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 following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") describes Eagle and its subsidiaries' results of operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023, and also analyzes our financial condition as of December 31, 2024 as compared to December 31, 2023.
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") describes Eagle and its subsidiaries' results of operations for the year ended December 31, 2025 as compared to the year ended December 31, 2024, and also analyzes our financial condition as of December 31, 2025 as compared to December 31, 2024.
“Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moin es. The Bank exceeded those minimum ratios as of December 31, 2024 and 2023.
“Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moin es. The Bank exceeded those minimum ratios as of December 31, 2025 and 2024.
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 20.0% given an immediate increase or decrease in interest rates of up to 400 basis points, and the subsequent twelve months (i.e. year-2) will not be reduced by more than 25.0% given an immediate increase or decrease in interest rates of up to 400 basis points.
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.
Recent acquisitions have added to our agricultural loans, which generally have shorter maturities and nominally higher interest rates. This has provided additional interest income and improved interest rate sensitivity.
Recent acquisitions have added to our agricultural loans, which generally have shorter maturities and nominally higher interest rates. This has provided additional in terest income and improved interest rate sensitivity.
(2) Deferred loan fees, net included in individual loan buckets above for the years ended December 31, 2024 and 2023. (3) Allowance for credit losses for the years ended December 31, 2024 and 2023; allowance for loan losses for the years ended December 31, 2022, 2021 and 2020.
(2) Deferred loan fees, net included in individual loan buckets above for the years ended December 31, 2025, 2024 and 2023. (3) Allowance for credit losses for the years ended December 31, 2025, 2024 and 2023; allowance for loan losses for the years ended December 31, 2022 and 2021.
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. As of December 31, 2024, we had mortgage servicing rights , net of $15.38 m illion compared to $15.85 million as of December 31, 2023.
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. As of December 31, 2025 , we had mortgage servicing rights, net of $15.04 m illion compared to $15.38 million as of December 31, 2024.
Changes in Market Rate Sensitivity Policy Policy Interest Rates As of December 31, 2024 Limits Limits (Basis Points) Year 1 Year 2 Year 1 Year 2 +300 -7.8 % 6.9 % -15.0 % -20.0 % +200 -5.2 % 7.0 % -15.0 % -15.0 % +100 -2.3 % 7.8 % -10.0 % -10.0 % -100 1.3 % 5.3 % -10.0 % -10.0 % -200 2.4 % 2.5 % -15.0 % -15.0 % -300 3.9 % -0.2 % -15.0 % -20.0 % 36 Table of Contents The following table discloses how the Bank’s economic value of equity (“EVE”) would react to interest rate changes.
Changes in Market As of December 31, 2025 Board Policy Board Policy Interest Rates Rate Sensitivity Limits Limits (Basis Points) Year 1 Year 2 Year 1 Year 2 +300 -3.3 % 7.4 % -15.0 % -20.0 % +200 -2.1 % 6.5 % -15.0 % -15.0 % +100 -0.9 % 5.8 % -10.0 % -10.0 % -100 -0.2 % 1.4 % -10.0 % -10.0 % -200 0.2 % -1.6 % -15.0 % -15.0 % -300 2.0 % -3.0 % -15.0 % -20.0 % The following table discloses how the Bank’s economic value of equity (“EVE”) would react to interest rate changes.
The Bank is within the guidelines set forth by the Board of Directors for interest rate sensitivity. The Bank’s Tier 1 leverage ratio, as measured under State of Montana and FRB rules, increased from 9.75% as of December 31, 2023 to 10.07% as of December 31, 2024 .
The Bank is within the guidelines set forth by the Board of Directors for interest rate sensitivity. The Bank’s Tier 1 leverage ratio, as measured under State of Montana and FRB rules, increased from 10.07% as of December 31, 2024 to 10.62% as of December 31, 2025 .
Commercial business loans represented 18.3% of the total loan portfolio, including agricultural loans representing 8.8% of the total loan portfolio. The purpose of this diversification is to mitigate our dependence on the residential mortgage market, as well as to improve our ability to manage our interest rate spread.
Commercial business loans represented 18.7% of the total loan portfolio, including agricultural loans representing 8.9% of t he total loan portfolio. The purpose of this diversification is to mitigate our dependence on the residential mortgage market, as well as to improve our ability to manage our interest rate spread.
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 but have been reflected in the table as loans carrying a zero yield.
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 are included in loans receivable as loans carrying a zero yield.
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 26% to 51% as of December 31, 2024.
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 32% to 48% as of December 31, 2025.
The allowance is measured on a collective pool basis when similar risk characteristics exist. Loans considered to have different risk characteristics that do not fall within any pool will be analyzed individually on a quarterly basis for potential individual reserve requirements.
The allowance is measured on a collective pool basis when similar risk characteristics exist. Loans considered to have different risk characteristics that do not fall within any pool will be analyzed individually on a quarterly basis for potential individual reserve requirements. Collateral-dependent loans and nonperforming loans will generally be evaluated individually.
Net cash used in the Company’s investing activities, which is primarily comprised of cash transactions related to activity in the loan portfolio and investment securities, was $27.80 million for the year ended December 31, 2024 compared to $108.21 million for the year ended December 31, 2023.
Net cash provided by the Company’s investing activities, which is primarily comprised of cash transactions related to activity in the loan portfolio and investment securities, was $21.96 million for the year ended December 31, 2025 compared to net cash used of $27.80 million for the year ended December 31, 2024.
All investment securities included in the investment portfolio are available-for-sale. Eagle also has interest-bearing deposits in other banks and federal funds sold, as well as stock in FHLB and FRB. FHLB stock was $7.78 million and $9.19 million at December 31, 2024 and 2023, respectively. FRB stock was $4.13 million for both at December 31, 2024 and 2023.
All investment securities included in the investment portfolio are available-for-sale. Eagle also has interest-bearing deposits in other banks and federal funds sold, as well as stock in FHLB and FRB. FHLB stock was $2.65 million and $7.78 million at December 31, 2025 and 2024, respectively. FRB stock was $4.13 million at December 31, 2025 and 2024.
Comparison of Cash Flow for Years Ended December 31, 2024 and 2023 Net cash provided by the Company’s operating activities, which is primarily comprised of cash transactions affecting net income, was $28.54 million for the year ended December 31, 2024 compared to $9.35 million for the prior year.
Comparison of Cash Flow for Years Ended December 31, 2025 and 2024 Net cash provided by the Company’s operating activities, which is primarily comprised of cash transactions affecting net income, was $33.13 million for the year ended December 31, 2025 compared to $28.54 million for the prior year.
Our quantitative annual impairment tests as of October 31, 2024 and 2023 also did not result in impairment. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment.
No interim goodwill impairment tests were performed in 2025. Our quantitative annual impairment tests as of October 31, 2025 and 2024 also did not result in impairment. However, changing economic conditions that may adversely affect the Company's performance, the fair value of its assets and liabilities, or its stock price could result in future impairment.
The Bank has also focused on adding commercial loans to our portfolio, both real estate and non-real estate. We have made significant progress in this initiative over the past decade. As of December 31, 2024, commercial real estate loans represented 60.3% of the total loan portfolio, including farmland loans representing 9.6% of the total loan portfolio.
The Bank has also focused on adding commercial loans to our portfolio, both real estate and non-real estate. We have made significant progress in this initiative over the past decade. As of December 31, 2025 , commercial real estate loans represented 60.5% of the total loan portfolio, including farmland loans representing 10.7% of the total loan portfolio.
At December 31, 2024 and 2023, the Company held $632.95 million and $618.78 million, respectively, in deposit accounts that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") requirements of $250,000 and greater.
At December 31, 2025 and 2024, the Company held $734.62 million and $632.95 million, respectively, in deposit accounts that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") requirements of $250,000 and greater.
Management monitors projected liquidity needs and determines the level desirable based in part on Eagle’s commitments to make loans and management’s assessment of Eagle’s ability to generate funds. 34 Table of Contents The Bank's available borrowing capacity was approximately $404.0 milli on as of December 31, 2024 and $398.50 million as of December 31, 2023.
Management monitors projected liquidity needs and determines the level desirable based in part on Eagle’s commitments to make loans and management’s assessment of Eagle’s ability to generate funds. 33 Table of Contents The Bank's available borrowing capacity was approximately $601.00 milli on as of December 31, 2025 and $404.00 million as of December 31, 2024.
The rate decreased to 4.50% during the year ended December 31, 2024. 22 Table of Contents Critical Accounting Policies and Estimates 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.
The rate decreased to 3.75% during the year ended December 31, 2025. 21 Table of Contents Critical Accounting Policies and Estimates 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.
The level and movement of interest rates impacts the Bank’s earnings as well. The Federal Open Market Committee increased the federal funds target rate to 5.50% during the year ended December 31, 2023.
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 4.50% during the year ended December 31, 2024.
Changes in Market EVE as a % Change from 0 Shock Interest Rates As of December 31, 2024 Board Policy (Basis Points) Projected EVE Limit Maximum % change: +300 2.2% -35.0% +200 1.7% -30.0% +100 1.5% -20.0% 0 0.0% 0.0% -100 -3.1% -20.0% -200 -7.9% -30.0% -300 -14.6% -35.0% Off-Balance Sheet Arrangements As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit.
Changes in Market EVE as a % Change from 0 Shock Interest Rates As of December 31, 2025 Board Policy (Basis Points) Projected EVE Limits Maximum % change: +300 4.3% -35.0% +200 3.4% -30.0% +100 2.2% -20.0% 0 0.0% 0.0% -100 -4.0% -20.0% 35 Table of Contents Off-Balance Sheet Arrangements As a financial services provider, we routinely are a party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit.
In September of 2024, the Company paid off the borrowings. Brokered deposits are another source of funding the Bank may utilize from time to time. As of December 31, 2024, the Bank had no brokered certificates and $5.57 m illion in brokered money market deposits.
In September of 2024, the Company paid off the borrowings. Brokered deposits are another source of funding the Bank may utilize from time to time. As of December 31, 2025, the Bank had no brokered certificates and $3.21 million in brokered money market deposits.
Interest accretion on purchased loans was $751,000 for the year ended December 31, 2024, which resulted in a 4 basis point increase in net interest margin, compared to $1.01 million for the year ended December 31, 2023, which resulted in a 6 basis point increase in net interest margin.
Interest accretion on purchased loans was $1.15 million for the year ended December 31, 2025 , which resulted in a six-basis point increase in net interest margin, compared to $751,000 for the year ended December 31, 2024 , which resulted in a four-basis point increase in net interest margin.
As of December 31, 2023, the Bank had $72.17 million in brokered certificates and $5.28 million in brokered money market deposits. Policy limits for brokered deposits are set at 10% of assets.
As of December 31, 2024, the Bank had no brokered certificates and $5.57 million in brokered money market deposits. Policy limits for brokered deposits are set at 10% of assets.
However, the estimated amount of uninsured deposits was approximately $323.12 million or 18.9% of total deposits at December 31, 2024 considering other factors such as joint accounts, deposits collateralized by Bank securities and deposit sharing programs like Intrafi Cash Service.
However, the estimated amount of uninsured deposits was approximately $354.59 million or 19.5% of total deposits at December 31, 2025 considering other factors such as joint accounts, deposits collateralized by Bank securities and deposit sharing programs like Intrafi Cash Service.
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.
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 has a $15.00 million line of credit with a correspondent bank.
Net cash provided by financing activities for the year ended December 31, 2024 was driven by an increase in deposits of $46.03 million, largely offset by a decrease in borrowings of $34.81 million. Net cash provided by financing activities for the year ended December 31, 2023 was largely impacted by borrowings of $106.34 million utilized to fund continued loan growth.
Net cash provided by financing activities for the year ended December 31, 2024 was largely impacted by an increase in deposits of $46.03 million, largely offset by a decrease in borrowings of $34.81 million.
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. 26 Table of Contents Loan Maturit ies . The following table sets forth the estimated maturity of the loan portfolio of the Bank at December 31, 2024.
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. 25 Table of Contents Loan Maturit ies . The following table sets forth the estimated maturity of the loan portfolio of the Bank at December 31, 2025. Balances exclude allowance for credit losses.
The following table sets forth information regarding nonperforming assets: December 31, 2024 2023 2022 2021 2020 (Dollars in Thousands) Non-accrual loans Real estate loans: Residential 1-4 family $ 469 $ 297 $ 483 $ 616 $ 684 Residential 1-4 family construction 961 757 - 337 337 Commercial real estate 268 340 350 497 631 Commercial construction and development 2 - - - 36 Farmland 190 3,716 143 989 2,245 Other loans: Home equity 335 182 96 100 94 Consumer 121 60 25 62 151 Commercial 204 27 44 516 537 Agricultural 677 3,016 1,059 1,718 1,542 Accruing loans delinquent 90 days or more Real estate loans: Residential 1-4 family 623 - 330 - 34 Residential 1-4 family construction - - - - 170 Farmland - 26 - - - Other loans: Home equity - - - - - Commercial - - 746 - 6 Agricultural - - - - 182 Restructured loans - - 4,502 2,224 1,824 Total nonperforming loans 3,850 8,421 7,778 7,059 8,473 Real estate owned and other repossessed property, net 45 5 - 4 25 Total nonperforming assets $ 3,895 $ 8,426 $ 7,778 $ 7,063 $ 8,498 Total nonperforming loans to total loans 0.25 % 0.57 % 0.57 % 0.76 % 1.00 % Total nonperforming loans to total assets 0.18 % 0.41 % 0.40 % 0.49 % 0.67 % Total nonaccrual loans to total loans 0.21 % 0.57 % 0.24 % 0.59 % 0.74 % Total nonperforming assets to total assets 0.19 % 0.41 % 0.40 % 0.49 % 0.68 % Nonaccrual loans as of December 31, 2024 and 2023 inclu de $591,000 and $1,681,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.
The following table sets forth information regarding nonperforming assets: December 31, 2025 2024 2023 2022 2021 (Dollars in Thousands) Non-accrual loans Real estate loans: Residential 1-4 family $ 298 $ 469 $ 297 $ 483 $ 616 Residential 1-4 family construction - 961 757 - 337 Commercial real estate 420 268 340 350 497 Commercial construction and development 1 2 - - - Farmland 308 190 3,716 143 989 Other loans: Home equity 395 335 182 96 100 Consumer 210 121 60 25 62 Commercial 279 204 27 44 516 Agricultural 177 677 3,016 1,059 1,718 Accruing loans delinquent 90 days or more Real estate loans: Residential 1-4 family 48 623 - 330 - Farmland 841 - 26 - - Other loans: Commercial 10 - - 746 - Agricultural 2,645 - - - - Restructured loans - - - 4,502 2,224 Total nonperforming loans 5,632 3,850 8,421 7,778 7,059 Real estate owned and other repossessed property, net 98 45 5 - 4 Total nonperforming assets $ 5,730 $ 3,895 $ 8,426 $ 7,778 $ 7,063 Total nonperforming loans to total loans 0.37 % 0.25 % 0.57 % 0.57 % 0.76 % Total nonperforming loans to total assets 0.27 % 0.18 % 0.41 % 0.40 % 0.49 % Total nonaccrual loans to total loans 0.14 % 0.21 % 0.57 % 0.24 % 0.59 % Total nonperforming assets to total assets 0.27 % 0.19 % 0.41 % 0.40 % 0.49 % Nonaccrual loans as of December 31, 2025 and 2024 inclu de $460,000 and $591,000, respectively, of acquired loans that deteriorated subsequent to the acquisition date.
The average interest rate earned on loans receivable increased by 51 basis points, from 5.53% for the year ended December 31, 2023, to 6.04% for the year ended December 31, 2024.
The average interest rate earned on loans receivable increased by 24 basis points, from 6.04% for the year ended December 31, 2024 , to 6.28% for the year ended December 31, 2025 .
In addition, average balances for loans receivable, including loans-held-for-sale, for the year ended December 31, 2024 were $1.52 billion, compared to $1.44 billion for the year ended December 31, 2023. This represents an increase of $86.71 million, or 6.00% and was due to organic growth.
In addition, average balances for loans receivable, including loans-held-for-sale, for the year ended December 31, 2025 were $1.55 billion, compared to $1.52 billion for the year ended December 31, 2024 . This represents an increase of $29.70 million, or 1.95%, and was due to organic growth.
Balances exclude deferred loan fees and allowance for credit losses. Scheduled principal repayments of loans do not necessarily reflect the actual life of such assets. The average life of a loan is typically substantially less than its contractual terms because of prepayments.
Scheduled principal repayments of loans do not necessarily reflect the actual life of such assets. The average life of a loan is typically substantially less than its contractual terms because of prepayments.
At December 31, 2024, w e had $16.85 mil lion in allowance for credit losses. At December 31, 2023 , we had $16.44 million in allowance for loan losses.
At December 31, 2025, w e had $17.37 mil lion in allowance for credit losses. At December 31, 2024 , we had $16.85 million in allowance for credit losses.
Collateral-dependent loans and nonperforming loans will generally be evaluated individually. 28 Table of Contents Management’s evaluation of classification of assets and adequacy of the allowance for credit losses is reviewed by the Board on a regular basis and by regulatory agencies as part of their examination process. We also utilize a third-party review as part of our loan classification process.
Management’s evaluation of classification of assets and adequacy of the allowance for credit losses is reviewed by the Board on a regular basis and by regulatory agencies as part of their examination process. We also utilize a third-party review as part of our loan classification process.
The yields have been computed on a tax equivalent basis. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or early redemptions that may occur.
Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or early redemptions that may occur.
The following table presents allocation of the allowance for credit losses by loan category and the percentage of loans in each category to total loans: December 31, 2024 2023 2022 Amount Percentage of Allowance to Total Allowance Loan Category to Total Loans Amount Percentage of Allowance to Total Allowance Loan Category to Total Loans Amount Percentage of Allowance to Total Allowance Loan Category to Total Loans (Dollars in Thousands) Real estate loans: Residential 1-4 family $ 1,911 11.34 % 13.12 % $ 1,866 11.35 % 13.48 % $ 1,472 10.51 % 14.44 % Commercial real estate 10,907 64.74 60.29 10,691 65.03 61.25 9,037 64.55 60.97 Total real estate loans 12,818 76.08 73.41 12,557 76.38 74.73 10,509 75.06 75.41 Other loans: Home equity 553 3.28 6.41 540 3.28 5.86 509 3.64 5.48 Consumer 245 1.45 1.88 304 1.85 2.03 342 2.44 2.04 Commercial 3,234 19.19 18.30 3,039 18.49 17.38 2,640 18.86 17.07 Total other loans 4,032 23.92 26.59 3,883 23.62 25.27 3,491 24.94 24.59 Total $ 16,850 100.00 % 100.00 % $ 16,440 100.00 % 100.00 % $ 14,000 100.00 % 100.00 % 30 Table of Contents Deposits and Other Sources of Funds Deposits .
The following table presents allocation of the allowance for credit losses by loan category and the percentage of loans in each category to total loans: December 31, 2025 2024 2023 Amount Percent of Allowance to Total Allowance Loan Category to Total Loans Amount Percent of Allowance to Total Allowance Loan Category to Total Loans Amount Percent of Allowance to Total Allowance Loan Category to Total Loans (Dollars in Thousands) Real estate loans: Residential 1-4 family $ 1,965 11.31 % 12.10 % $ 1,911 11.34 % 13.12 % $ 1,866 11.35 % 13.48 % Commercial real estate 11,295 65.03 60.49 10,907 64.74 60.29 10,691 65.03 61.25 Total real estate loans 13,260 76.34 72.59 12,818 76.08 73.41 12,557 76.38 74.73 Other loans: Home equity 547 3.15 7.11 553 3.28 6.41 540 3.28 5.86 Consumer 84 0.48 1.61 245 1.45 1.88 304 1.85 2.03 Commercial 3,479 20.03 18.69 3,234 19.19 18.30 3,039 18.49 17.38 Total other loans 4,110 23.66 27.41 4,032 23.92 26.59 3,883 23.62 25.27 Total $ 17,370 100.00 % 100.00 % $ 16,850 100.00 % 100.00 % $ 16,440 100.00 % 100.00 % Deposits and Other Sources of Funds Deposits .
Interest on investment securities available-for-sale decreased by $948,000 or 8.3% period over period, primarily due to the decrease in average balances for investments from $328.53 million for the year ended December 31, 2023, to $306.54 million for the year ended December 31, 2024.
Interest on investment securities available-for-sale decreased by $962,000, or 9.2%, period over period, primarily due to the decrease in average balances for investments from $306.54 million for the year ended December 31, 2024 , to $286.08 million for the year ended December 31, 2025 .
The following table summarizes investment activities: December 31, 2024 2023 2022 Fair Value Percentage of Total Fair Value Percentage of Total Fair Value Percentage of Total (Dollars in Thousands) Securities available-for-sale: U.S. government and agency obligations $ 5,195 1.78 % $ 6,543 2.06 % $ 2,390 0.68 % U.S. treasury obligations 46,913 16.03 % 46,815 14.71 51,951 14.86 Municipal obligations 117,877 40.29 % 137,950 43.33 172,849 49.47 Corporate obligations 4,162 1.42 % 3,905 1.23 6,990 2.00 Mortgage-backed securities 28,235 9.65 % 26,753 8.41 29,653 8.48 Collateralized mortgage obligations 82,623 28.24 % 86,568 27.20 82,131 23.50 Asset-backed securities 7,585 2.59 % 9,745 3.06 3,531 1.01 Total securities available-for-sale $ 292,590 100.00 % $ 318,279 100.00 % $ 349,495 100.00 % Securities available-for-sale were $292.59 million at December 31, 2024, a decrease o f $25.69 million, or 8.1%, from $318.28 million at December 31, 2023.
The following table summarizes investment activities: December 31, 2025 2024 2023 Fair Value Percent of Total Fair Value Percent of Total Fair Value Percent of Total (Dollars in Thousands) Securities available-for-sale: U.S. government and agency obligations $ 4,155 1.48 % $ 5,195 1.78 % $ 6,543 2.06 % U.S. treasury obligations 44,308 15.73 46,913 16.03 46,815 14.71 Municipal obligations 118,324 41.99 117,877 40.29 137,950 43.33 Corporate obligations 1,971 0.70 4,162 1.42 3,905 1.23 Mortgage-backed securities 26,494 9.41 28,235 9.65 26,753 8.41 Collateralized mortgage obligations 79,661 28.28 82,623 28.24 86,568 27.20 Asset-backed securities 6,779 2.41 7,585 2.59 9,745 3.06 Total securities available-for-sale $ 281,692 100.00 % $ 292,590 100.00 % $ 318,279 100.00 % Securities available-for-sale were $281.69 million at December 31, 2025, a decrease o f $10.90 million, or 3.7%, from $292.59 million at December 31, 2024.
Based on our historical experience, we include IRA accounts funded by certificates of deposit as core deposits because they exhibit the principal features of core deposits in that they are stable and generally are not rate sensitive.
Based on our historical experience, we include IRA accounts funded by certificates of deposit as core deposits because they exhibit the principal features of core deposits in that they are stable and generally are not rate sensitive. Core deposits were $1.34 billion or 75.2% of the Bank’s total deposits at December 31, 2025.
Eagle has a line of credit with Bell Bank. Advances from FHLB and other borrowings decreased by $34.81 million to $140.93 million at December 31, 2024 from $175.74 million at December 31, 2023. The decrease was related to an increase in deposits.
Eagle has a line of credit with Bell Bank. Advances from FHLB and other borrowings, including federal funds purchased, decreased by $102.9 million to $38.03 million at December 31, 2025 from $140.93 million at December 31, 2024. The decrease was related to an increase in deposits.
Total shareholders’ equ ity increased by $5.50 million or 3.2% from December 31, 2023. 23 Table of Contents Financial Condition Details Investment Activities We maintain a portfolio of investment securities, classified as either available-for-sale or held-to-maturity to enhance total return on investments.
Total shareholders’ equity increased by $17.04 million or 9.7% from December 31, 2024. 22 Table of Contents Financial Condition Details Investment Activities We maintain a portfolio of investment securities, classified as either available-for-sale or held-to-maturity to enhance total return on investments.
Provision for Credit Losses Provision for credit losses was $518,000 for the year ended December 31, 2024, compared to $1.46 million in loan loss provisions for the year ended December 31, 2023.
Provision for Credit Losses Provision for credit losses was $1.18 million for the year ended December 31, 2025 , compared to $518,000 for the year ended December 31, 2024 .
Net cash provided by operating activities was higher for the year ended December 31, 2024 primarily due to changes in loans held-for-sale activity. Mortgage volumes have been impacted by the current interest rate environment.
Net cash provided by operating activities was higher for the year ended December 31, 2025 primarily due to changes in loans held-for-sale activity.
December 31, December 31, 2024 2023 Borrowings Remaining Borrowing Borrowings Remaining Borrowing Outstanding Capacity Outstanding Capacity (Dollars in Thousands) 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 During the first quarter of 2023, the FRB offered a new Bank Term Funding Program ("BTFP") for eligible depository institutions.
December 31, December 31, 2025 2024 Borrowings Remaining Borrowing Borrowings Remaining Borrowing Outstanding Capacity Outstanding Capacity (In Thousands) Federal Home Loan Bank advances $ 22,917 $ 492,553 $ 140,930 $ 276,664 Federal Reserve Bank discount window - 23,506 - 27,349 Correspondent bank lines of credit 15,105 84,895 - 100,000 Total $ 38,022 $ 600,954 $ 140,930 $ 404,013 During the first quarter of 2023, the FRB offered a new Bank Term Funding Program ("BTFP") for eligible depository institutions.
Any resulting impairment loss could have a material adverse impact on the Company's financial condition and results of operations. Management will continue to monitor events that could influence this conclusion in the future. See Note 7 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data” for further information.
Any resulting impairment loss could have a material adverse impact on the Company's financial condition and results of operations. Management will continue to monitor events that could influence this conclusion in the future. The Company's accounting policies and discussion of recent accounting pronouncements is included in Note 1 to the Consolidated Financial Statements in "Item 8.
Controls and Procedures for additional information regarding this matter. 35 Table of Contents Capital Resources At December 31, 2024 , 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 1.7% compared to a decrease of 1.3% at December 31, 2023 .
Capital Resources At December 31, 2025 , 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 3.4% compared to an increase of 1.7% at December 31, 2024 .
Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022 Average Interest Average Interest Average Interest Daily and Yield/ Daily and Yield/ Daily and Yield/ Balance Dividends Cost (4) Balance Dividends Cost (4) Balance Dividends Cost (4) (Dollars in Thousands) Assets: Interest earning assets: Investment securities $ 306,538 $ 10,428 3.39 % $ 328,533 $ 11,376 3.46 % $ 336,779 $ 8,579 2.55 % FHLB and FRB stock 13,535 1,085 7.99 12,851 727 5.66 6,369 302 4.74 Loans receivable (1) 1,523,384 92,282 6.04 1,436,672 79,423 5.53 1,194,788 60,353 5.05 Other earning assets 6,663 416 6.23 2,671 89 3.33 34,170 228 0.67 Total interest-earning assets 1,850,120 104,211 5.62 1,780,727 91,615 5.14 1,572,106 69,462 4.42 Noninterest-earning assets 241,931 234,859 196,813 Total assets $ 2,092,051 $ 2,015,586 $ 1,768,919 Liabilities and equity: Interest-bearing liabilities: Deposit accounts: Checking $ 218,175 $ 391 0.18 % $ 237,006 $ 595 0.25 % $ 244,208 $ 173 0.07 % Savings 212,221 134 0.06 238,695 146 0.06 269,033 128 0.05 Money market 350,431 8,660 2.46 331,199 5,548 1.68 358,122 1,711 0.48 Certificates of deposit 443,313 18,653 4.20 357,573 11,568 3.24 188,954 1,112 0.59 FHLB advances and other borrowings 190,082 10,211 5.36 159,667 8,562 5.36 14,627 514 3.51 Other long-term debt 59,080 2,724 4.60 58,930 2,719 4.61 59,807 2,512 4.2 Total interest-bearing liabilities 1,473,302 40,773 2.76 1,383,070 29,138 2.11 1,134,751 6,150 0.54 Noninterest checking 412,251 439,388 453,841 Other noninterest-bearing liabilities 41,907 34,321 24,672 Total liabilities 1,927,460 1,856,779 1,613,264 Total equity 164,591 158,807 155,655 Total liabilities and equity $ 2,092,051 $ 2,015,586 $ 1,768,919 Net interest income/interest rate spread (2) $ 63,438 2.86 % $ 62,477 3.04 % $ 63,312 3.88 % Net interest margin (3) 3.42 % 3.51 % 4.03 % Total interest earning assets to interest-bearing liabilities 125.58 % 128.75 % 138.54 % (1) Includes loans held-for-sale.
Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 Average Interest Average Interest Average Interest Daily and Yield/ Daily and Yield/ Daily and Yield/ Balance Dividends Cost (4) Balance Dividends Cost (4) Balance Dividends Cost (4) (Dollars in Thousands) Assets: Interest earning assets: Investment securities $ 286,079 $ 9,466 3.31 % $ 306,538 $ 10,428 3.39 % $ 328,533 $ 11,376 3.46 % FHLB and FRB stock 10,256 922 8.99 13,535 1,085 7.99 12,851 727 5.66 Loans receivable (1) 1,553,083 97,598 6.28 1,523,384 92,282 6.04 1,436,672 79,423 5.53 Other earning assets 10,811 425 3.93 6,663 416 6.23 2,671 89 3.33 Total interest-earning assets 1,860,229 108,411 5.83 1,850,120 104,211 5.62 1,780,727 91,615 5.14 Noninterest-earning assets 251,029 241,931 234,859 Total assets $ 2,111,258 $ 2,092,051 $ 2,015,586 Liabilities and equity: Interest-bearing liabilities: Deposit accounts: Checking $ 213,050 $ 422 0.20 % $ 218,175 $ 391 0.18 % $ 237,006 $ 595 0.25 % Savings 208,460 124 0.06 212,221 134 0.06 238,695 146 0.06 Money market 421,428 10,117 2.40 350,431 8,660 2.46 331,199 5,548 1.68 Certificates of deposit 458,738 17,113 3.73 443,313 18,653 4.20 357,573 11,568 3.24 FHLB advances and other borrowings 105,120 4,964 4.72 190,082 10,211 5.36 159,667 8,562 5.36 Other long-term debt 55,467 2,774 5.00 59,080 2,724 4.60 58,930 2,719 4.61 Total interest-bearing liabilities 1,462,263 35,514 2.43 1,473,302 40,773 2.76 1,383,070 29,138 2.11 Noninterest checking 423,163 412,251 439,388 Other noninterest-bearing liabilities 43,091 41,907 34,321 Total liabilities 1,928,517 1,927,460 1,856,779 Total equity 182,741 164,591 158,807 Total liabilities and equity $ 2,111,258 $ 2,092,051 $ 2,015,586 Net interest income/interest rate spread (2) $ 72,897 3.40 % $ 63,438 2.86 % $ 62,477 3.04 % Net interest margin (3) 3.92 % 3.42 % 3.51 % Total interest earning assets to interest-bearing liabilities 127.22 % 125.58 % 128.75 % (1) Includes loans held-for-sale.
In addition, average interest rates earned on investments decreased from 3.46% for the year ended December 31, 2023, to 3.39% for the year ended December 31, 2024. 33 Table of Contents Interest Expense Total interest expense was $40.77 million for the year ended December 31, 2024, increasing from $29.14 million for the year ended December 31, 2023.
In addition, average interest rates earned on investments decreased from 3.39% for the year ended December 31, 2024 , to 3.31% for the year ended December 31, 2025 . Interest Expense Total interest expense was $35.51 million for the year ended December 31, 2025 , decreasing from $40.77 million for the year ended December 31, 2024 .
Net cash used in investing activities for the year ended December 31, 2024, was impacted by loan originations being higher than loan pay-off and principal payments during the year. Loan origination and principal collection, net was $36.20 million for the year ended December 31, 2024. Pay-off activity has slowed with current interest rate levels.
In addition, loan pay-off and principal payments were higher than loan originations during the year. Loan origination and principal collection, net was $1.30 million for the year ended December 31, 2025. Net cash used in investing activities for the year ended December 31, 2024, was impacted by loan originations being higher than loan pay-off and principal payments during the year.
The following table shows the amount of certificates of deposit with balances of $250,000 and greater by time remaining until maturity as of December 31, 2024: Balance $250,000 and Greater (In Thousands) 3 months or less $ 74,271 Over 3 to 6 months 31,044 Over 6 to 12 months 35,109 Over 12 months 5,229 Total $ 145,653 Our depositors are primarily residents of the state of Montana.
The following table shows the amount of certificates of deposit with balances of $250,000 and greater by time remaining until maturity as of December 31, 2025 : Balance $250,000 and Greater (In Thousands) 3 months or less $ 45,245 Over 3 to 6 months 56,930 Over 6 to 12 months 42,385 Over 12 months 4,580 Total $ 149,140 Our depositors are primarily residents of the state of Montana.
The following table summarizes other long-term debt activity: December 31, December 31, 2024 2023 Net Percent Net Percent Amount of Total Amount of Total (Dollars in Thousands) Subordinated debentures fixed at 5.50% to floating, due 2030 $ 14,815 $ 25.05 $ 14,781 $ 25.05 Subordinated debentures fixed at 3.50% to floating, due 2032 39,179 66.24 39,063 66.21 Subordinated debentures variable at 3-Month SOFR plus 1.68%, due 2035 5,155 8.71 5,155 8.74 Total other long-term debt, net $ 59,149 100.00 % $ 58,999 100.00 % Total other long-term de bt was $59.15 million at December 31, 2024 compared t o $59.00 million at December 31, 2023 .
The following table summarizes other long-term debt activity: December 31, December 31, 2025 2024 Net Percent Net Percent Amount of Total Amount of Total (Dollars in Thousands) Subordinated debentures fixed at 5.50% to floating effective July 1, 2025, due 2030 $ - 0.00 % $ 14,815 25.05 % Subordinated debentures fixed at 3.50% to floating, due 2032 39,295 88.40 39,179 66.24 Subordinated debentures variable at 3-Month SOFR plus 1.68%, due 2035 5,155 11.60 5,155 8.71 Total other long-term debt, net $ 44,450 100.00 % $ 59,149 100.00 % Total other long-term de bt was $44.45 million at December 31, 2025 compared t o $59.15 million at December 31, 2024 . 30 Table of Contents On October 1, 2025, the Company redeemed all of the 5.50% fixed-to-floating rate subordinated notes due July 1, 2030, having an aggregate principal amount of $15.00 million.
Net cash provided by the Company’s financing activities was $6.27 million for the year ended December 31, 2024 compared to $101.59 million for the year ended December 31, 2023.
Net cash used in the Company’s financing activities was $23.69 million for the year ended December 31, 2025 compared to net cash provided of $6.27 million for the year ended December 31, 2024.
The following table includes information for allowance for credit losses: Years Ended December 31, 2024 2023 2022 (Dollars in Thousands) Beginning balance $ 16,440 $ 14,000 $ 12,500 Impact of adopting ASC 326 - 700 - Provision for credit losses 408 1,666 2,001 Charge-offs Residential 1-4 Family (11 ) - (199 ) Commercial real estate - - - Home equity - - (32 ) Consumer (65 ) (50 ) (31 ) Commercial (10 ) (129 ) (299 ) Recoveries Residential 1-4 Family - 195 4 Commercial real estate 18 23 30 Home equity - 13 - Consumer 3 3 4 Commercial 67 19 22 Net loan charge-offs (recoveries) 2 74 (501 ) Ending balance $ 16,850 $ 16,440 $ 14,000 Allowance for credit losses to total loans excluding loans held-for-sale 1.11 % 1.11 % 1.03 % Allowance for credit losses to total nonperforming loans 437.66 % 195.23 % 179.99 % Allowance for credit losses to nonaccrual loans 526.56 % 249.96 % 424.50 % Net charge-offs (recoveries) to average loans outstanding during the period 0.00 % 0.01 % -0.04 % Net charge-offs to average loans outstanding for each loan category are considered insignificant for the periods presented in the table above.
It is our policy to review our loan portfolio, in accordance with regulatory classification procedures, on at least a quarterly basis. 28 Table of Contents The following table includes information for allowance for credit losses: Years Ended December 31, 2025 2024 2023 (Dollars in Thousands) Beginning balance $ 16,850 $ 16,440 $ 14,000 Impact of adopting ASC 326 - - 700 Provision for credit losses 741 408 1,666 Charge-offs Residential 1-4 Family - (11 ) - Commercial real estate (33 ) - - Home equity (27 ) - - Consumer (175 ) (65 ) (50 ) Commercial (6 ) (10 ) (129 ) Recoveries Residential 1-4 Family - - 195 Commercial real estate 13 18 23 Home equity - - 13 Consumer 5 3 3 Commercial 2 67 19 Net loan (charge-offs) recoveries (221 ) 2 74 Ending balance $ 17,370 $ 16,850 $ 16,440 Allowance for credit losses to total loans excluding loans held-for-sale 1.14 % 1.11 % 1.11 % Allowance for credit losses to total nonperforming loans 308.42 % 437.66 % 195.23 % Allowance for credit losses to nonaccrual loans with no allowance for credit losses 922.46 % 526.56 % 249.96 % Net loan (charge-offs) recoveries to average loans outstanding during the period including loans held-for-sale -0.01 % 0.00 % 0.01 % Net loan charge-offs for each loan category to average loans outstanding during the period including loans held-for-sale are considered insignificant for the periods presented in the table above.
Available-for-sale securities sales and maturities, principal payments and calls were $35.27 million for the year ended December 31, 2024. A portion of the proceeds were used to purchase additional available-for-sale securities totaling $10.98 million.
Loan origination and principal collection, net was $36.20 million for the year ended December 31, 2024. Pay-off activity has slowed with current interest rate levels. Available-for-sale securities sales and maturities, principal payments and calls were $35.27 million for the year ended December 31, 2024. A portion of the proceeds were used to purchase additional available-for-sale securities totaling $10.98 million.
Loans held-for-sale increased by $1.94 million, to $13.37 million at December 31, 2024 from $11.43 million at December 31, 2023 . 25 Table of Contents The following table includes the composition of the commercial real estate loan category: December 31, 2024 (In Thousands) Non-Owner Occupied Owner Occupied Total Percent of Total CRE Automotive related $ - $ 23,738 $ 23,738 3.67 % Bars and restaurants 5,030 15,912 20,942 3.24 Car washes 884 - 884 0.14 Construction and related industries 19,717 13,968 33,685 5.21 Healthcare and social assistance 10,483 13,907 24,390 3.78 Hospitality industry related - 13,764 13,764 2.13 Hotels and other traveler accommodations 66,702 - 66,702 10.33 Industrial/warehouse 51,168 - 51,168 7.92 Lessors of mini warehouses and self-storage units 16,682 - 16,682 2.58 Lessors of nonresidential buildings 67,782 - 67,782 10.49 Lessors of other real estate property 31,675 - 31,675 4.90 Multifamily 113,789 - 113,789 17.63 Office space 20,553 38,104 58,657 9.08 Other 37,876 25,253 63,129 9.77 Other real estate rental and leasing 6,836 - 6,836 1.06 Real estate leasing activities - 27,465 27,465 4.25 Wholesale and retail trade 11,969 12,705 24,674 3.82 Total commercial real estate $ 461,146 $ 184,816 $ 645,962 100.00 % December 31, 2023 (In Thousands) Non-Owner Occupied Owner Occupied Total Percent of Total CRE Automotive related $ - $ 22,241 $ 22,241 3.65 % Bars and restaurants 5,565 14,954 20,519 3.37 Car washes 10,792 - 10,792 1.77 Construction and related industries 17,530 11,840 29,370 4.83 Healthcare and social assistance 10,206 21,564 31,770 5.22 Hospitality industry related - 14,756 14,756 2.42 Hotels and other traveler accommodations 58,157 - 58,157 9.55 Industrial/warehouse 43,983 - 43,983 7.23 Lessors of mini warehouses and self-storage units 13,959 - 13,959 2.29 Lessors of nonresidential buildings 63,515 - 63,515 10.44 Lessors of other real estate property 9,778 - 9,778 1.61 Multifamily 86,980 - 86,980 14.29 Office space 20,150 40,657 60,807 9.99 Other 54,556 25,197 79,753 13.11 Other real estate rental and leasing 4,877 - 4,877 0.80 Real estate leasing activities - 28,998 28,998 4.76 Wholesale and retail trade 14,575 13,861 28,436 4.67 Total commercial real estate $ 414,623 $ 194,068 $ 608,691 100.00 % Commercial real estate loans made up $645.96 million or 42.5% of the Bank's total loan portfolio at December 31, 2024, compared to $608.69 million or 41.0% at December 31, 2023.
Loans held-for-sale decreased by $5.92 million, to $7.45 million at December 31, 2025 from $13.37 million at December 31, 2024 . 24 Table of Contents The following table includes the composition of the commercial real estate loan category: 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 % December 31, 2024 Non-Owner Occupied Owner Occupied Total Percent of Total CRE (Dollars In Thousands) Automotive related $ - $ 23,738 $ 23,738 3.67 % Bars and restaurants 5,030 15,912 20,942 3.24 Car washes 884 - 884 0.14 Construction and related industries 19,717 13,968 33,685 5.21 Healthcare and social assistance 10,483 13,907 24,390 3.78 Hospitality industry related - 13,764 13,764 2.13 Hotels and other traveler accommodations 66,702 - 66,702 10.33 Industrial/warehouse 51,168 - 51,168 7.92 Lessors of mini warehouses and self-storage units 16,682 - 16,682 2.58 Lessors of nonresidential buildings 67,782 - 67,782 10.49 Lessors of other real estate property 31,675 - 31,675 4.90 Multifamily 113,789 - 113,789 17.63 Office space 20,553 38,104 58,657 9.08 Other real estate rental and leasing 6,836 - 6,836 1.06 Real estate leasing activities - 27,465 27,465 4.25 Wholesale and retail trade 11,969 12,705 24,674 3.82 Other 37,876 25,253 63,129 9.77 Total commercial real estate $ 461,146 $ 184,816 $ 645,962 100.00 % Commercial real estate loans made up $635.97 million or 41.9% of the Bank's total loan portfolio at December 31, 2025, compared to $645.96 million or 42.5% at December 31, 2024.
The following table includes deposit accounts and associated weighted average interest rates for each category of deposits: December 31, 2024 2023 2022 Weighted Weighted Weighted Percent Average Percent Average Percent Average Amount of Total Rate Amount of Total Rate Amount of Total Rate (Dollars in Thousands) Noninterest checking $ 419,211 24.94 % 0.00 % $ 418,727 25.61 % 0.00 % $ 468,955 28.68 % 0.00 % Interest-bearing checking 221,476 13.17 0.18 211,101 12.91 0.05 252,922 15.47 0.11 Savings 210,572 12.52 0.06 230,711 14.11 0.06 273,790 16.74 0.06 Money market 367,094 21.83 1.82 330,274 20.20 1.66 387,947 23.72 1.12 Total 1,218,353 72.46 0.47 1,190,813 72.83 0.40 1,383,614 84.61 0.34 Certificates of deposit accounts: IRA certificates 21,419 1.27 0.94 22,960 1.40 0.75 24,907 1.52 0.48 Brokered certificates - - 0.00 72,168 4.41 5.28 - 0.00 0.00 Other certificates 441,456 26.27 4.41 349,254 21.36 4.04 226,751 13.87 1.51 Total certificates of deposit 462,875 27.54 4.25 444,382 27.17 4.08 251,658 15.39 1.41 Total deposits $ 1,681,228 100.00 % 1.59 % $ 1,635,195 100.00 % 1.45 % $ 1,635,272 100.00 % 0.50 % Overall deposits increased year over year by $46.03 million.
This modest decline has eased some pressure on our overall cost of funds; however, certificates of deposit still represent a higher‑cost funding source and could continue to influence our cost structure going forward. 29 Table of Contents The following table includes deposit accounts and associated weighted average interest rates for each category of deposits: December 31, 2025 2024 2023 Weighted Weighted Weighted Percent Average Percent Average Percent Average Amount of Total Rate Amount of Total Rate Amount of Total Rate (Dollars in Thousands) Noninterest checking $ 452,183 25.38 % 0.00 % $ 419,211 24.94 % 0.00 % $ 418,727 25.61 % 0.00 % Interest-bearing checking 218,484 12.27 0.19 221,476 13.17 0.18 211,101 12.91 0.05 Savings 207,789 11.66 0.06 210,572 12.52 0.06 230,711 14.11 0.06 Money market 440,971 24.75 1.77 367,094 21.83 1.82 330,274 20.20 1.66 Total 1,319,427 74.06 0.50 1,218,353 72.46 0.47 1,190,813 72.83 0.40 Certificates of deposit accounts: IRA certificates 20,926 1.17 1.08 21,419 1.27 0.94 22,960 1.40 0.75 Brokered certificates - - 0.00 - - 0.00 72,168 4.41 5.28 Other certificates 441,246 24.77 3.70 441,456 26.27 4.41 349,254 21.36 4.04 Total certificates of deposit 462,172 25.94 3.58 462,875 27.54 4.25 444,382 27.17 4.08 Total deposits $ 1,781,599 100.00 % 1.37 % $ 1,681,228 100.00 % 1.59 % $ 1,635,195 100.00 % 1.45 % Overall deposits increased year over year by $100.37 million.
Impact of Inflation and Changing Prices Our consolidated financial statements and the accompanying notes, which are found in Item 8, 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.
At December 31, 2025 , the Bank’s total capital, Tier 1 capital, common equity Tier 1 capital and Tier 1 leverage ratios amounted to 14.28%, 13.15%, 13.15% and 10.62%, respectively, compared to regulatory requirements of 10.50%, 8.50%, 7.00% and 4.00%, respectively. 34 Table of Contents Impact of Inflation and Changing Prices Our consolidated financial statements and the accompanying notes, which are found in Item 8, 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.
( 2 ) Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities.
( 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.
Shareholders’ Equity Total shareholders’ equity increased by $5.50 million or 3.2%, to $174.77 million at December 31, 2024 from $169.27 million at December 31, 2023. This increase was primarily the result of net income of $9.78 million. This increase was partially offset by dividends paid of $4.54 million.
Shareholders’ Equity Total shareholders’ equity increased by $17.04 million or 9.7%, to $191.81 million at December 31, 2025 from $174.77 million at December 31, 2024. This increase was primarily the result of net income of $14.84 million and other comprehensive income of $7.27 million. These increases were partially offset by dividends paid of $4.58 million.
During the year ended December 31, 2023, the Bank sold one real estate owned and other repossessed asset. There were no subsequent write-up on real estate owned and other repossessed assets during the year ended December 31, 2023.
During the year ended December 31, 2025 , the Bank sold four real estate owned and other repossessed assets resulting in a net loss of $10,000. There were no subsequent write-downs on real estate owned or other repossessed assets during the year ended December 31, 2025 .
Year Ended December 31, 2024 Year Ended December 31, 2023 Due to Due to Volume Rate Net Volume Rate Net (In Thousands) Interest earning assets: Investment securities $ (762 ) $ (186 ) $ (948 ) $ (210 ) $ 3,007 $ 2,797 FHLB and FRB stock 39 319 358 307 118 425 Loans receivable (1) 4,794 8,065 12,859 12,218 6,852 19,070 Other earning assets 133 194 327 (210 ) 71 (139 ) Total interest earning assets 4,204 8,392 12,596 12,105 10,048 22,153 Interest-bearing liabilities: Checking (47) (157) (204) (5) 427 422 Savings (16) 4 (12) (14) 32 18 Money market 322 2,790 3,112 (129) 3,966 3,837 Certificates of deposit 2,774 4,311 7,085 992 9,464 10,456 FHLB advances and other borrowings 1,631 18 1,649 5,097 2,951 8,048 Other long-term debt 7 (2 ) 5 (37 ) 244 207 Total interest-bearing liabilities 4,671 6,964 11,635 5,904 17,084 22,988 Change in net interest income $ (467 ) $ 1,428 $ 961 $ 6,201 $ (7,036 ) $ (835 ) (1) Includes loans held-for-sale.
Year Ended December 31, 2025 Year Ended December 31, 2024 Due to Due to Volume Rate Net Volume Rate Net (In Thousands) Interest earning assets: Investment securities $ (696 ) $ (266 ) $ (962 ) $ (762 ) $ (186 ) $ (948 ) FHLB and FRB stock (263 ) 100 (163 ) 39 319 358 Loans receivable (1) 1,799 3,517 5,316 4,794 8,065 12,859 Other earning assets 259 (250 ) 9 133 194 327 Total interest earning assets 1,099 3,101 4,200 4,204 8,392 12,596 Interest-bearing liabilities: Checking (9) 40 31 (47) (157) (204) Savings (2) (8) (10) (16) 4 (12) Money market 1,754 (297) 1,457 322 2,790 3,112 Certificates of deposit 649 (2,189 ) (1,540 ) 2,774 4,311 7,085 FHLB advances and other borrowings (4,564 ) (683 ) (5,247 ) 1,631 18 1,649 Other long-term debt (167 ) 217 50 7 (2 ) 5 Total interest-bearing liabilities (2,339 ) (2,920 ) (5,259 ) 4,671 6,964 11,635 Change in net interest income $ 3,438 $ 6,021 $ 9,459 $ (467 ) $ 1,428 $ 961 (1) Includes loans held-for-sale.
( 4 ) For purposes of this table, tax exempt income is not calculated on a tax equivalent basis. 32 Table of Contents Rate/Volume Analysis The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
The change in NIM reflects the increase in yields on interest-earning assets and the decrease in the average rate on interest-bearing liabilities. 31 Table of Contents Rate/Volume Analysis The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
The weighted average rate for borrowings was 4.72% as of December 31, 2024, compared to 5.48% at December 31, 2023. 31 Table of Contents Other Long-Term Debt.
The weighted average rate for borrowings was 5.24% at December 31, 2025, compared to 4.72% at December 31, 2024. The outstanding balance under the Bell Bank line of credit was $15.00 million at December 31, 2025. Other Long-Term Debt.
For the year ended December 31, 2024, gross margin was 3.18% compared to 3.31% for the year ended December 31, 2023. Noninterest Expense Noninterest expense was $ 69.31 million for the year ended December 31, 2024 , compared to $72.09 million for the year ended December 31, 2023 , a decrease of $2.78 million, or 3.9%.
Noninterest Expense Noninterest expense was $ 71.50 million for the year ended December 31, 2025 , compared to $69.31 million for the year ended December 31, 2024 , an increase of $2.19 million, or 3.2%.
Total commercial real estate originations were $135.55 million. Home equity loan originations totaled $31.63 million. Consumer loan originations totaled $13.65 million.
Total commercial originations were $154.29 million. Total commercial real estate originations were $136.33 million. Home equity loan originations totaled $32.65 million. Consumer loan originations totaled $12.57 million.
The following table provides information regarding the Bank’s delinquent loans: December 31, 2024 30-89 Days 90 Days and Greater Number Amount Percentage of Total Number Amount Percentage of Total (Dollars in Thousands) (Dollars in Thousands) Loan type: Real estate loans: Residential 1-4 family 9 $ 1,326 12.90 % 1 $ 623 100.00 % Commercial real estate 5 5,739 55.84 - - 0.00 Commercial construction and development 2 951 9.25 - - 0.00 Farmland 2 54 0.53 - - 0.00 Other loans: Home equity 5 382 3.72 - - 0.00 Consumer 56 195 1.90 - - 0.00 Commercial 4 1,064 10.35 - - 0.00 Agricultural 4 566 5.51 0.00 Total 87 $ 10,277 100.00 % 1 $ 623 100.00 % 27 Table of Contents Nonperforming Assets.
The following table provides information regarding the Bank’s delinquent loans: December 31, 2025 30-89 Days 90 Days and Greater Number Amount Percent of Total Number Amount Percent of Total (Dollars in Thousands) (Dollars in Thousands) Loan type: Real estate loans: Residential 1-4 family 10 $ 1,591 35.28 % 1 $ 48 1.35 % Commercial real estate 3 660 14.63 - - 0.00 Commercial construction and development 3 213 4.72 - - 0.00 Farmland 3 481 10.67 3 841 23.73 Other loans: Home equity 10 637 14.12 - - 0.00 Consumer 77 203 4.50 - - 0.00 Commercial 8 557 12.35 2 10 0.28 Agricultural 2 168 3.73 7 2,645 74.64 Total 116 $ 4,510 100.00 % 13 $ 3,544 100.00 % 26 Table of Contents Nonperforming Assets.
These increases were slightly offset by decreases in consumer loans of $1.62 million and residential loans of $590,000. Total loan originations were $607.73 million for the year ended December 31, 2024 . Total residential 1-4 family originations were $271.79 million, which includes $214.32 million of originations of loans held-for-sale. Total commercial originations were $155.11 million.
These decreases were largely offset by increases in home equity loans of $10.53 million, total commercial loans of $5.50 million and total commercial real estate loans of $2.06 million. Total loan originations were $614.74 million for the year ended December 31, 2025 . Total residential 1-4 family originations were $278.90 million, which includes $225.11 million of originations of loans held-for-sale.
Mortgage banking, net includes net gain on sale of mortgage loans which decreased $4.66 million to $6.74 million for the year ended December 31, 2024 , compared to $11.40 million for the year ended December 31, 2023 .
Mortgage banking, net includes net gain on sale of mortgage loans which increased $982,000 to $7.72 million for the year ended December 31, 2025 , compared to $6.74 million for the year ended December 31, 2024 . During the year ended December 31, 2025 , $230.90 million residential mortgage loans were sold compared to $211.78 million in the prior year.
Interest and fees on loans increased to $92.28 million for the year ended December 31, 2024 from $79.42 million for the same period ended December 31, 2023. This increase of $12.86 million, or 16.2%, was due in part to an increase in the average yield of loans.
Interest and fees on loans increased to $ 97.60 million for the year ended December 31, 2025 , from $92.28 million for the same period ended December 31, 2024 .
The decrease was due to sales of $14.12 million and maturity, principal payments and call activity of $21.45 million. These decreases were partially offset by $10.98 million in investment purchases. In addition, unrealized losses on securities increased from prior year by $273,000. The following table sets forth information regarding fair values, weighted average yields and maturities of investments.
The decrease was primarily due to maturity, principal payments and call activity of $27.12 million partially offset by $7.04 million in investment purchases and an increase in fair value of $9.88 million. The following table sets forth information regarding amortized costs, fair values, weighted average yields and maturities of investments. The yields have been computed on a tax equivalent basis.
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