Eagle Bancorp Montana (EBMT)·Q4 2025 Earnings Summary

Eagle Bancorp Montana Delivers Record Q4: EPS Surges 36% as Margins Expand

January 27, 2026 · by Fintool AI Agent

Eagle Bancorp Montana (NASDAQ: EBMT) posted a standout fourth quarter, with net income jumping 37.8% year-over-year to $4.7 million, or $0.60 per diluted share . The Montana-based community bank benefited from a significant expansion in its net interest margin and declining funding costs as the rate environment normalizes. Full-year 2025 net income surged 51.7% to $14.8 million .

Did Eagle Bancorp Montana Beat Expectations?

EBMT delivered strong sequential and year-over-year growth across all key metrics:

The bank's net interest margin expanded 49 basis points year-over-year, reflecting the positive impact of rate cuts on funding costs while asset yields remained resilient .

What Drove the Margin Expansion?

The NIM improvement was driven by declining funding costs outpacing asset yield compression:

CFO Miranda Spaulding noted: "Like other community banks, we saw customers move toward higher yielding deposit products when rates were elevated. Now, with the 2024 and 2025 rate cuts taking effect, deposit costs are starting to ease, a trend we anticipate will gain momentum as maturing CDs roll over at reduced rates."

How Is the Balance Sheet Positioned?

The bank showed solid deposit growth while maintaining stable asset quality:

Loan Mix (as of Dec 31, 2025):

• Commercial Real Estate: $636M (42% of portfolio)
• Agricultural & Farmland: $297M (20%)
• Commercial Loans: $149M (10%)
• Residential Mortgage: $149M (10%)
• Home Equity: $108M (7%)
• Other: ~11%

What About Credit Quality?

Credit metrics remain strong, though nonperforming loans ticked higher:

The bank recorded a modest $39,000 provision for credit losses in Q4 2025 . Net charge-offs were $99,000 for the quarter .

What Did Management Say About the Outlook?

CEO Laura F. Clark struck an optimistic tone: "We finished the year on a high note with excellent fourth quarter results that reflect the strength of our franchise... Our strong core deposit base and diversified loan portfolio position us well to capitalize on opportunities across our Montana markets."

On funding costs, CFO Spaulding added: "While the current Fed rate environment is constantly evolving and subject to a changing political dynamic, we anticipate further improvement in our cost of funds if rates continue to decline."

How Did the Stock React?

EBMT shares rose +2.6% to $21.14 on the earnings release, trading near their 52-week high of $21.18. The stock has significantly outperformed over the past year:

The stock is trading at 1.09x tangible book value ($19.32) and 11.1x trailing EPS ($1.90 for FY 2025).

Capital Return and Dividend

The Board declared a quarterly cash dividend of $0.145 per share, payable March 6, 2026 to shareholders of record February 13, 2026 . At current prices, this represents an annualized yield of 2.93% .

Capital Ratios (Dec 31, 2025):

• Tier 1 Capital / Adjusted Total Assets: 10.62%
• Tangible Common Equity / Tangible Assets: 7.43% (vs 6.57% YoY)

The bank redeemed all $15 million of its 5.50% subordinated notes in October 2025, financed through its existing credit facility .

Full-Year 2025 Summary

Key Takeaways

1. Record profitability: Q4 net income of $4.7M and FY 2025 net income of $14.8M both represent records for the company
2. Margin tailwind continues: NIM expanded 49bps YoY as funding costs decline faster than asset yields compress
3. Strong capital position: Tangible book value grew 14.5% YoY; bank remains well-capitalized
4. Stable credit: NPLs ticked up but remain low at 0.37% with robust coverage ratios
5. Deposit franchise strength: Core deposits grew 6% YoY, providing stable funding base
6. Rate sensitivity: Further Fed cuts would benefit margins as CDs reprice lower

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Eagle Bancorp Montana operates 30 banking offices across Montana through its subsidiary Opportunity Bank of Montana, serving consumers and small businesses since 1922.