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EB

Eagle Bancorp Montana, Inc. (EBMT)·Q1 2025 Earnings Summary

Executive Summary

  • EPS $0.41 and net income $3.239M; NIM expanded 15 bps QoQ to 3.74% as funding costs fell to 2.54% and asset yields rose to 5.76% .
  • Revenues were $20.918M; noninterest expense fell 3.9% QoQ on lower data processing costs; mortgage banking softened sequentially on lower volumes .
  • Beat vs S&P Global consensus: EPS $0.41 vs $0.32*, Revenues $20.918M vs $16.90M*; management highlighted easing deposit pricing and expects continued cost-of-funds improvement .
  • Capital actions: dividend of $0.1425 per share and authorization to repurchase up to 400,000 shares (~5% of outstanding), adding potential support to the stock .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.74% (+15 bps QoQ; +41 bps YoY) on higher asset yields and lower funding costs; CFO: “We anticipate continued improvement in our cost of funds based on current Fed rates.” .
  • Operating discipline: noninterest expense declined to $17.006M (-3.9% QoQ) driven by data processing contract changes; core efficiency ratio improved to 79.77% .
  • Core franchise stability: deposits grew $8.7M QoQ and $54.4M YoY to $1.690B; uninsured deposits fell QoQ to ~$309.0M (18%) from $323.0M (19%) .

What Went Wrong

  • Mortgage banking weakened: net mortgage banking income fell to $2.125M from $2.818M in Q4 due to lower gains on sale amid softer volumes ($43.2M originations vs $68.1M in Q4) .
  • Credit quality mixed: nonperforming loans rose QoQ to $5.339M (0.35% of loans) though ACL coverage remained strong at 313% of NPLs; modest $42K provision booked .
  • Revenues down sequentially (-2.1% QoQ to $20.918M) with noninterest income down 12.2% QoQ; prior quarter benefited from higher mortgage and other income .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenues ($USD Millions)$20.8 $21.4 $20.918
Net Interest Income ($USD Millions)$15.802 $16.790 $16.902
Noninterest Income ($USD Millions)$4.983 $4.572 $4.016
Net Income ($USD Millions)$2.709 $3.433 $3.239
Diluted EPS ($USD)$0.34 $0.44 $0.41
Net Interest Margin (%)3.34% 3.59% 3.74%
Cost of Funds (%)2.89% 2.69% 2.54%
Yield on Earning Assets (%)5.66% 5.70% 5.76%

Segment/Lending Mix (Quarter-end balances)

Loan Category ($USD Millions)Mar 31, 2024Dec 31, 2024Mar 31, 2025
Commercial Real Estate$632.452 $645.962 $666.265
Agricultural & Farmland$140.246 $146.610 $153.456
Residential 1-4 Family$157.414 $153.721 $149.699
Commercial Construction & Development$147.740 $124.211 $110.107
Commercial Loans$137.640 $144.039 $139.668
Home Equity$90.418 $97.543 $100.665
Residential Construction$45.026 $45.701 $45.508
Consumer$29.677 $28.513 $26.978
Agricultural (Commercial Ag)$116.775 $134.346 $131.162
Total Loans$1,497.388 $1,520.646 $1,523.508

Key Banking KPIs

KPIQ3 2024Q4 2024Q1 2025
ROA (%)0.51% 0.65% 0.62%
ROE (%)6.56% 8.12% 7.66%
Core Efficiency Ratio (%)81.47% 81.26% 79.77%
ACL / Loans (%)1.12% 1.11% 1.10%
NPLs / Loans (%)0.31% 0.25% 0.35%
Uninsured Deposits ($, %)$307.0M, 18% $323.0M, 19% $309.0M, 18%
Deposits ($USD Billions)$1.651 $1.681 $1.690

Deposit Mix

Mix (%) of DepositsSep 30, 2024Dec 31, 2024Mar 31, 2025
Noninterest-bearing Checking25.4% 24.9% 24.3%
Interest-bearing Checking12.7% 13.2% 12.5%
Savings12.9% 12.5% 12.6%
Money Market21.3% 21.8% 23.5%
Time Certificates of Deposit27.7% 27.6% 27.1%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cost of Funds / NIM2025 outlook“Anticipate additional improvement in cost of funds over the next several quarters.” (Q4 commentary) “Anticipate continued improvement in cost of funds based on current Fed rates.” Maintained qualitative positive outlook
Dividend per ShareQ2 2025 payable Jun 6, 2025$0.1425 (declared Jan 23; paid Mar 7 in Q1) $0.1425 (declared Apr 24; payable Jun 6) Maintained
Stock Repurchase Authorization~12 months starting May 1, 2025None disclosed priorUp to 400,000 shares (~5% of outstanding) New authorization
Tax Rate (effective)Quarterly7.3% in Q4 2024 16.3% in Q1 2025 Higher vs prior quarter (no formal forward guidance)

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in the document set searched; thus themes reflect management’s press release commentary.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Deposit pricing / cost of fundsMix shifting to higher-yielding deposits; expect stabilization post Fed cuts “Recent Fed rate cuts have started to ease deposit pricing… anticipate improvement” “Ease in deposit pricing… anticipate continued improvement as CDs reprice” Improving
Net interest marginNIM down to 3.34% on cost pressure NIM up to 3.59% (+25 bps QoQ) NIM up to 3.74% (+15 bps QoQ) Improving
Mortgage bankingLower YoY volumes; net mortgage banking $2.602M Net mortgage banking $2.818M; YoY decline on lower gains Net mortgage banking $2.125M; sequential decline on lower gains and volumes Soft
Credit qualityProvision $277K; NPLs $4.803M; ACL/NPL 357% Provision recapture $36K; NPLs $3.850M; ACL/NPL 438% Provision $42K; NPLs $5.339M; ACL/NPL 313% Mixed (higher NPLs QoQ, coverage strong)
Capital / TBVTCE/TA 6.56%; TBV/share $17.23 TCE/TA 6.57%; TBV/share $16.88 TCE/TA 6.77%; TBV/share $17.38 Improving
Loan growth / mixSelective growth; CRE +5.2% YoY; C&D down YoY Loan growth moderated; CRE +6.1% YoY; C&D down YoY CRE +5.3% YoY; Ag +10.7% YoY; C&D down 25.5% YoY Stable mix shift (more CRE/Ag, less C&D)

Management Commentary

  • CEO (Laura F. Clark): “We produced solid first quarter 2025 operating results, reflecting quarterly deposit growth, a reduction in operating expenses and net interest margin expansion.”
  • CEO: “We are making progress in building our community bank franchise… while market volatility and interest rate cycles continue to impact the overall economy, we remain well positioned in our markets to continue to grow.”
  • CFO (Miranda Spaulding): “We have started to experience an ease in deposit pricing following the Fed rate cuts… and we anticipate this will continue as CDs continue to reprice.”
  • CFO: “The higher yields on interest earning assets combined with a lower cost of funds contributed to our 15-basis point NIM expansion… We anticipate continued improvement in our cost of funds based on current Fed rates.”

Q&A Highlights

No Q1 2025 earnings call transcript was found; therefore Q&A highlights and any clarifications from the call are not available in the document set searched (press release and 8-K only) .

Estimates Context

MetricS&P Global Consensus*ActualSurprise
EPS ($USD)$0.32*$0.41 +$0.09
Revenues ($USD Millions)$16.90*$20.918 +$4.02M

Values retrieved from S&P Global.*

Implications:

  • EPS beat and revenue beat signal stronger-than-expected NIM trajectory and disciplined cost control; estimates likely to move higher on sustained margin improvement and deposit cost relief .

Key Takeaways for Investors

  • Margin expansion appears durable with sequential cost-of-funds improvement and rising asset yields; watch for continued NIM gains as CDs reprice through 2025 .
  • Expense control is evident; lower data processing costs and improved core efficiency ratio provide operating leverage if mortgage banking stabilizes .
  • Credit metrics show higher NPLs QoQ but strong reserve coverage (ACL/NPL >300%); benign net charge-offs support earnings quality .
  • Balance sheet stability: deposits up QoQ/YoY; uninsured deposits down QoQ to ~18%, reducing liquidity risk sensitivity .
  • Capital actions (dividend + buyback authorization up to 400,000 shares) provide potential share support and signal confidence in capital position .
  • Loan mix shift toward CRE and agriculture with reduced construction exposure reflects prudent risk posture amid the rate backdrop .
  • Near-term trading: print beat on EPS/revenue and buyback headline are positive catalysts; medium term thesis hinges on continued deposit repricing tailwinds and mortgage banking normalization .

Additional Data Appendix

  • Total assets $2.088B; shareholders’ equity $177.573M; TBV/share $17.38; TCE/TA 6.77% (non-GAAP) .
  • Available borrowing capacity ~$437.4M vs $404.0M at year-end .
  • Effective tax rate 16.3% in Q1 2025 vs 7.3% in Q4 2024 (quarterly) .