HELENA, Mont. – Eagle Bancorp (NASDAQ:EGBN) Montana, Inc. (NASDAQ:EBMT), the parent company of Opportunity Bank of Montana, disclosed its financial results for the third quarter of 2024, revealing a net income of $2.7 million, or $0.34 per diluted share. This performance marks an improvement from the $1.7 million, or $0.22 per diluted share, reported in the previous quarter and is slightly above the $2.6 million, or $0.34 per diluted share, from the third quarter of 2023.
The bank's net income for the first nine months of 2024 totaled $6.3 million, or $0.81 per diluted share, a decrease from the $7.9 million, or $1.01 per diluted share, recorded during the same period in 2023. Despite this year-over-year decline, the bank's board declared a quarterly cash dividend of $0.1425 per share on October 17, 2024, payable on December 6, 2024, to shareholders of record as of November 15, 2024.
Eagle Bancorp Montana's President and CEO, Laura F. Clark, highlighted the improved operating results, citing an increase in both net interest income and noninterest income compared to the second quarter of 2024. The bank experienced modest loan growth of 1.1% for the quarter and 4.0% year-over-year. Total deposits also saw a rise, increasing by 2.0% over the linked quarter.
The bank’s net interest margin (NIM) contracted slightly to 3.34% in the third quarter of 2024 from 3.41% in the previous quarter and the same period a year ago. The total loan portfolio grew to $1.53 billion as of September 30, 2024, while total deposits reached $1.65 billion, indicating a year-over-year increase of 2.2%.
Eagle Bancorp Montana's balance sheet showed assets totaling $2.15 billion, a 4.0% increase from the previous year. The investment securities portfolio was reported at $307.0 million, and the bank's borrowing capacity stood at approximately $348.1 million.
The bank's credit quality remained solid, with the allowance for credit losses representing 1.12% of portfolio loans and 356.7% of nonperforming loans. Nonperforming loans amounted to $4.8 million at the end of the quarter.
Eagle Bancorp Montana operates as a community bank through 29 banking offices, serving consumers and small businesses in Montana. Information in this article is based on a press release statement.
In other recent news, Eagle Bancorp Montana, Inc. disclosed amendments to the compensation agreements for three of its top executives in a recent 8-K filing with the U.S. Securities and Exchange Commission. These changes, approved by the Boards of Directors of both Eagle Bancorp Montana and its wholly-owned subsidiary, Opportunity Bank of Montana, will take effect from November 1, 2024. Laura F. Clark, the company's President and CEO, will see her annual benefit increase from $26,500 to $46,000. Miranda J. Spaulding, the Senior Vice President and CFO, will have her annual benefit raised from $95,000 to $99,500. Furthermore, Dale F. Field, the Senior Vice President and Chief Credit Officer, will receive an increase in his annual benefit from $70,000 to $89,000. The filing did not disclose the financial implications of these changes for the company or its executives. It's important to note that these are recent developments and the specific details of the amendments are documented in the 8-K report.
InvestingPro Insights
Eagle Bancorp Montana's (NASDAQ:EBMT) recent financial results reflect a company navigating a challenging economic landscape while maintaining its commitment to shareholders. According to InvestingPro data, the bank's market capitalization stands at $132.13 million, with a price-to-earnings ratio of 15.42, indicating a relatively modest valuation compared to industry peers.
One of the most notable InvestingPro Tips is that Eagle Bancorp Montana has raised its dividend for 12 consecutive years, demonstrating a strong commitment to returning value to shareholders. This aligns with the company's recent declaration of a quarterly cash dividend, as mentioned in the article. Additionally, the bank has maintained dividend payments for 25 consecutive years, showcasing long-term financial stability.
The bank's revenue for the last twelve months as of Q2 2024 was $80.56 million, with a revenue growth rate of -7.6% over the same period. This decline in revenue is consistent with another InvestingPro Tip, which suggests that analysts anticipate a sales decline in the current year. Despite this, the bank's profitability remains intact, with InvestingPro data showing an operating income margin of 15.04% for the last twelve months.
It's worth noting that Eagle Bancorp Montana's stock has seen a significant price uptick over the last six months, with InvestingPro data showing a 6-month price total return of 34.42%. This positive momentum could be attributed to the bank's improved quarterly results and consistent dividend policy, as highlighted in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Eagle Bancorp Montana, providing a deeper insight into the company's financial health and market position.
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