Eagle Bancorp Montana, Inc. (EBMT)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 showed clear sequential improvement: EPS rose to $0.44 (vs $0.34 in Q3 and $0.28 YoY), revenues increased to $21.4M, and NIM expanded 25 bps QoQ to 3.59% on higher asset yields and lower funding costs; noninterest expense was contained and there was a small provision recapture, underpinning earnings quality .
• Deposit franchise strengthened: total deposits grew to $1.68B with the average cost of total deposits down to 1.71% (from 1.76% in Q3), non‑CDs comprised 72.4% of deposits, brokered CDs fell to zero, and borrowing capacity increased to ~$404M—supporting liquidity and further NIM stabilization .
• Credit quality improved: NPLs fell to 0.25% of loans (from 0.31% in Q3 and 0.57% YoY), ACL coverage rose to 437.7% of NPLs, and management recorded a modest provision recapture due to muted loan growth and positive CECL factors .
• Management outlook: CEO/ CFO highlighted strong deposit growth, “sound revenue generation,” and expected further improvement in cost of funds as Fed cuts ease deposit pricing; they anticipate steady single‑digit loan growth in 2025, but mortgage volumes remain subdued .
• Estimates context: S&P Global consensus (EPS/revenue) was unavailable at this time (API daily limit); as a result, no formal beat/miss vs Street can be calculated for Q4 2024.*

What Went Well and What Went Wrong

• What Went Well

  • Net interest margin expanded 25 bps QoQ to 3.59% on higher average yields (5.70%) and lower funding costs (2.69%), with management expecting further cost‑of‑funds improvement ahead .
  • Core funding and liquidity strengthened: deposits rose to $1.68B, average cost of deposits declined to 1.71%, non‑CDs reached 72.4% of deposits, brokered CDs dropped to $0, and available borrowing capacity rose to ~$404M .
  • Credit metrics improved: NPLs/loans fell to 0.25% (from 0.31% in Q3 and 0.57% YoY); ACL/NPL coverage rose to 437.7%; a $36K provision recapture reflected positive CECL inputs .

• What Went Wrong

  • Noninterest income fell 8.2% QoQ to $4.57M, with Q3 benefitting from $724K of BOLI income not repeated in Q4; mortgage banking remained below prior‑year levels on lower volumes .
  • Total loans declined 0.9% QoQ to $1.521B as commercial construction/development continued to contract YoY (down 21.5% vs Dec‑23), partially offsetting strength in CRE and agriculture .
  • Tangible book value per share declined QoQ to $16.88 (from $17.23) as AOCI losses widened sequentially; nevertheless, tangible common equity/tangible assets was steady at 6.57% .

Financial Results

Segment (Loan Portfolio) Breakdown – Period-End Balances

Key Credit & Balance Sheet KPIs

Guidance Changes

Note: EBMT does not provide formal numerical revenue/EPS/expense guidance; commentary is directional.

Earnings Call Themes & Trends

(Transcript for Q4 2024 was not available in the corpus; themes reflect management’s press release commentary and prior quarter releases.)

Management Commentary

• CEO: “Eagle’s fourth quarter operating results were highlighted by strong quarterly deposit growth, sound revenue generation, and net interest margin expansion… we continue to maintain quality credit… anticipating steady single‑digit loan growth in the year ahead.”
• CFO: “Similar to other community banks, our deposit mix has shifted towards higher yielding deposits… the recent Fed rate cuts have started to ease deposit pricing, and we anticipate this will continue… The higher yields on interest earning assets combined with a lower cost of funds contributed to our 25 basis point NIM expansion… We anticipate additional improvement in our cost of funds over the next several quarters.”

Q&A Highlights

• Q4 2024 earnings call transcript was not available in the document set searched; no Q&A details to report [Search returned no earnings-call-transcript for window 2024‑12‑01 to 2025‑02‑15].

Estimates Context

• Wall Street (S&P Global) consensus for Q4 2024 EPS and revenue was unavailable at time of analysis due to S&P Global API daily limit; therefore we cannot assess beats/misses vs consensus for this quarter.*
• Given limited sell‑side coverage for small‑cap community banks, future estimate comparisons may be sparse; we will update when SPGI data is accessible.

Key Takeaways for Investors

• NIM inflected higher (+25 bps QoQ) as funding costs declined and asset yields improved; further cost‑of‑funds improvement is expected if the easing cycle persists—supportive for 2025 NII and EPS trajectory .
• Funding mix and liquidity improved: deposit cost down to 1.71%, non‑CDs at 72.4%, brokered CDs eliminated, and borrowing capacity up to ~$404M—reducing liquidity and refinancing risk and enabling balance sheet flexibility .
• Credit remains a pillar: NPLs/loans fell to 0.25% and ACL/NPL coverage rose to 438%, allowing a small provision recapture; credit normalization risks appear manageable under current CECL assumptions .
• Mortgage banking stabilized sequentially but remains below prior‑year levels; core earnings are increasingly driven by spread income as mortgage volumes stay subdued in a still‑elevated rate environment .
• Capital/returns improved YoY (core efficiency ratio to 81.26% vs 88.08% in Q4 2023), though tangible book dipped QoQ; continued AOCI sensitivity to rates is a watch item .
• Near‑term trading implication: positive NIM/COF momentum and improved liquidity/credit likely support multiple and sentiment; absence of estimates limits headline beat/miss catalysts. Medium‑term: steady single‑digit loan growth with disciplined mix (less construction) and easing COF can compound earnings if rate cuts continue and credit remains benign .

* S&P Global consensus data was unavailable due to API daily request limit at query time.