Eagle Bancorp Montana, Inc. (EBMT)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 delivered solid community bank fundamentals: diluted EPS of $0.41 matched Q1 and rose materially YoY, NIM expanded 17 bps QoQ to 3.91%, and revenues climbed 9.7% QoQ to $23.0M on stronger net interest income and mortgage banking .
• Loans grew 3.0% QoQ to $1.57B and deposits increased 2.8% QoQ to $1.74B; available borrowing capacity rose to ~$463M, bolstering liquidity and flexibility .
• Credit remained stable but normalized: provision for credit losses increased to $1.0M vs $42k in Q1, while ACL covered ~349% of NPLs; net charge-offs remained minimal ($48k) .
• Board raised the quarterly dividend to $0.145 per share (from $0.1425), and the company repurchased 25k shares at $16.34 avg price—consistent capital return and opportunistic buybacks .
• Versus S&P Global consensus, EBMT posted a slight EPS miss and a revenue beat: EPS $0.41 vs $0.42*, revenue $21.9M vs $17.3M*; notable discrepancy exists between S&P’s “revenue” and the company’s “revenues” definition (see Estimates Context) .

What Went Well and What Went Wrong

What Went Well

• NIM expansion and funding cost improvement drove revenue strength: NIM rose to 3.91% (+17 bps QoQ), average yields increased, and funding costs fell; interest accretion on acquired loans added 13 bps to NIM. “Given the current Fed rate environment, we expect further improvement in our funding costs moving forward,” per CFO Miranda Spaulding .
• Mortgage banking recovery: net mortgage banking income increased to $2.9M (vs $2.1M in Q1), supported by higher gain on sale; originations and sales rose QoQ with improved margins (3.81% gross margin vs 3.15% prior) .
• Balance-sheet strength: deposits grew 2.8% QoQ, uninsured deposits remained ~19% of total, and borrowing capacity expanded to ~$463M, enhancing liquidity profile .

What Went Wrong

• Provision normalization: provision for credit losses rose to $1.0M from $42k in Q1 (and $412k in Q2 2024), reflecting model updates amid growth; albeit ACL coverage of NPLs improved QoQ to ~349% .
• Noninterest expense increased 5.4% QoQ to $17.9M, driven by commissions tied to higher mortgage originations, partially offsetting operating leverage .
• Deposit mix remains skewed to higher-yielding products, pressuring cost of funds over cycles; while pricing is moderating post 2024 Fed cuts, CFO flagged caution on inflation and “potential impacts from new tariffs” that could affect future rate policy and repricing assumptions .

Financial Results

Guidance Changes

Earnings Call Themes & Trends

Note: No EBMT Q2 2025 earnings call transcript was available in our repository; themes reflect quarterly disclosures across the last two quarters and the Q4 2024 release.

Management Commentary

• CEO perspective: “We delivered strong financial results for the second quarter of 2025, marked by growth in both loans and deposits, as well as continued expansion in our net interest margin… we remain well-positioned within our markets to drive sustainable growth” — Laura F. Clark, President & CEO .
• CFO on funding costs and NIM: “The combination of higher yields on interest-earning assets and a decline in our cost of funds led to a 17-basis point increase in our net interest margin… we expect further improvement in our funding costs moving forward” — Miranda J. Spaulding, CFO .
• CFO on deposit pricing and macro sensitivity: “We have begun to see a moderation in deposit pricing… we remain cautious, as emerging inflationary pressures—including potential impacts from new tariffs… could influence future interest rate policy” — Miranda J. Spaulding .

Q&A Highlights

• Not available. An earnings call transcript for EBMT Q2 2025 was not located in our document set; we rely on the press release disclosures for this quarter’s qualitative detail.

Estimates Context

• Q2 2025 EPS: Actual $0.41 vs Consensus $0.42* — slight miss. Revenue: Actual $21.914M vs Consensus $17.306M* — bold beat. Number of estimates: EPS 3*, Revenue 3*.
• Note on “revenue” definitions: S&P Global’s “Revenue” differs from the company’s “Revenues” (defined as net interest income before provision plus noninterest income), which totaled $23.0M per the press release; for estimate comparison, we anchor to S&P’s revenue definition. Values retrieved from S&P Global.*
  | Metric | Q2 2025 Consensus* | Q2 2025 Actual* | Surprise* | |--------|---------------------|------------------|-----------| | Primary EPS ($) | 0.42 | 0.41 | -$0.01 | | Revenue ($USD Millions) | 17.306 | 21.914 | +$4.608 |

Key Takeaways for Investors

• NIM trajectory and funding cost relief remain the core catalysts; continued moderation in deposit pricing and accretion benefit support margin resilience near term .
• Revenue momentum is broad-based: net interest income growth plus mortgage banking recovery; watch sustainability as rates and housing activity evolve .
• Provision lift appears normalization rather than deterioration; coverage ratios are robust and nonperforming metrics stable—constructive credit stance with prudent provisioning .
• Liquidity and capital flexibility are strong: higher borrowing capacity, stable uninsured deposit share, dividend increase, and ongoing buybacks provide optionality .
• Near-term trading: stock may react to margin expansion and dividend raise; sensitivity to macro headlines (tariffs/inflation) and credit provisioning cadence could drive volatility .
• Medium-term thesis: steady single-digit balance sheet growth, improving efficiency (core ratio down to 76.8%), and disciplined capital return underpin returns as rate cycle stabilizes .
• Monitor disclosures for any formal guidance on NIM, tax rate, and mortgage banking volumes; current qualitative tone suggests cautious optimism, but macro risks warrant vigilance .