Key Highlights

  • Eagle Bancorp Montana reported third quarter net income of USD 3.0 million, or USD 0.38 per diluted share, below estimates.
  • Net interest margin was 4.12% for the quarter, compared with 4.15% in the preceding quarter and 3.94% a year earlier.
  • Total loans reached USD 1.72 billion, up USD 159.0 million from the prior quarter and from a year earlier.
  • The board declared a quarterly cash dividend of USD 0.1475 per share, representing an annualized yield of 2.58%.

Net Income Declines as Loan Growth Accelerates

Eagle Bancorp Montana (NASDAQ:EBMT) reported third quarter net income of USD 3.0 million, or USD 0.38 per diluted share, compared with USD 3.7 million, or USD 0.47 per diluted share, in the second quarter of 2026, and USD 3.6 million, or USD 0.46 per diluted share, in the third quarter of 2025. Revenues, defined as net interest income before provision for credit losses plus noninterest income, were USD 25.1 million, up from USD 24.2 million in the preceding quarter.

Total loans reached USD 1.72 billion, an increase of USD 159.0 million compared with June 30, 2026, and a similar increase compared with a year earlier, reflecting what the company described as record loan growth across its markets and lending lines.

Net Interest Margin Holds Near Multi-Quarter Highs

Net interest margin was 4.12% for the quarter, compared with 4.15% in the preceding quarter and 3.94% in the third quarter of 2025. Net interest income, before the provision for credit losses, increased 4.4% to USD 20.0 million from the second quarter and rose 7.0% from a year earlier.

The average yield on interest earning assets held steady at 5.77%, matching the prior quarter, while funding costs rose slightly to 2.14% from 2.12% in the second quarter. For the first nine months of 2026, net interest margin expanded 27 basis points to 4.13% compared with the same period of 2025.

Liquidity Position and Dividend

The company's available borrowing capacity was approximately USD 452.2 million at quarter end, down from USD 575.0 million at the end of the second quarter, reflecting the use of short term advances to support loan production during the quarter. The board declared a quarterly cash dividend of USD 0.1475 per share, representing an annualized yield of 2.58% based on the average closing stock price during the quarter.

The sequential decline in net income, even as loan growth accelerated, reflects the funding costs associated with supporting that growth through short term borrowings, a dynamic that could normalize as deposit growth catches up with loan expansion in subsequent quarters.

Loan and Margin Trends to Watch

The pace of loan growth relative to the USD 159.0 million increase reported this quarter, net interest margin trends relative to the 4.12% reported this period, and the company's use of short term borrowing capacity to fund growth are among the items that may shape how the fourth quarter is assessed. Nine month net interest margin expansion of 27 basis points remains a reference point for the full year trend.