HELENA, Mont., July 28, 2026 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ:EBMT), (the "Company," "Eagle"), the holding company of Opportunity Bank of Montana (the "Bank"), today reported net income of $3.7 million, or $0.47 per diluted share, in the second quarter of 2026, compared to $4.0 million, or $0.51 per diluted share, in the preceding quarter, and $3.2 million, or $0.41 per diluted share, in the second quarter of 2025. In the first six months of 2026, net income increased to $7.7 million, or $0.98 per diluted share, compared to $6.5 million, or $0.83 per diluted share, in the first six months of 2025.

Eagle’s board of directors increased its quarterly cash dividend by 1.7% to $0.1475 per share on July 16, 2026. The dividend will be payable on September 4, 2026, to shareholders of record on August 14, 2026. The current dividend represents an annualized yield of 2.63% based on the average closing price of the Company’s common stock reported on NASDAQ during the second quarter of 2026 of $22.44 per share.

"Our second quarter results reflect the strength of our franchise and the consistency with which we generate core earnings," said Laura F. Clark, CEO. "Compared to the same quarter last year, both net income and earnings per share moved higher, a result supported by continued improvement in funding cost alongside resilient asset yields. Net interest margin also continued to expand, climbing to 4.15% for the second quarter. Backed by a strong core deposit base and a well-diversified loan portfolio, we are well positioned to pursue growth opportunities across our footprint and continuing to create lasting value for our shareholders."

Second Quarter 2026 Highlights (at or for the three-month period ended June 30, 2026, except where noted):

Net income was $3.7 million, or $0.47 per diluted share, in the second quarter of 2026, compared to $4.0 million, or $0.51 per diluted share in the preceding quarter, and $3.2 million, or $0.41 per diluted share, in the second quarter a year ago.
Net interest margin ("NIM") was 4.15% in the second quarter of 2026, compared to 4.11% in the preceding quarter and 3.91% in the second quarter a year ago.
Net interest income, before the provision for credit losses, increased 2.3% to $19.1 million in the second quarter of 2026, compared to $18.7 million in the first quarter of 2026, and increased 5.5% compared to $18.1 million in the second quarter of 2025.
Revenues (net interest income before the provision for credit losses, plus noninterest income) were $24.2 million in the second quarter of 2026, compared to $23.6 million in the preceding quarter and $23.0 million in the second quarter a year ago.
Total loans of $1.56 billion increased $39.1 million compared to March 31, 2026 and decreased $11.3 million compared to a year earlier.
The allowance for credit losses was $17.6 million, or 1.13% of total loans, at June 30, 2026, compared to $17.4 million, or 1.15% of total loans, at March 31, 2026, and $17.7 million, or 1.13% of total loans, a year ago.
Total deposits of $1.79 billion remained unchanged compared to March 31, 2026 and increased $52.3 million, or 3.0%, compared to a year earlier.
Eagles’s common shareholders’ equity (book value) per share increased to $24.78 at June 30, 2026, compared to $24.22 at March 31, 2026, and $22.72 at June 30, 2025. Tangible book value per share (non-GAAP) increased to $20.07 at June 30, 2026, compared to $19.48 at March 31, 2026, and $17.86 at June 30, 2025.
The Company’s available borrowing capacity was approximately $575.0 million at June 30, 2026, compared to $593.1 million at March 31, 2026, and $463.0 million at June 30, 2025.
The Company paid a quarterly cash dividend in the second quarter of $0.1450 per share on June 5, 2026, to shareholders of record May 15, 2026.

Balance Sheet Results

Total assets were $2.13 billion at June 30, 2026, compared to $2.14 billion one year ago, and $2.09 billion three months earlier. The investment securities portfolio totaled $285.7 million at June 30, 2026, compared to $285.0 million a year ago, and $274.9 million at March 31, 2026.

Eagle originated $88.1 million in new residential mortgages during the quarter and sold $72.5 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.07%. This production compares to residential mortgage originations of $75.0 million in the preceding quarter with sales of $66.1 million and an average gross margin on sale of mortgage loans of approximately 2.54%.

Total loans decreased $11.3 million compared to a year ago and increased $39.1 million compared to three months earlier. Commercial real estate loans increased to $684.4 million at June 30, 2026, compared to $675.3 million a year earlier. Commercial real estate loans were comprised of 72.1% non-owner occupied and 27.9% owner occupied at June 30, 2026. Agricultural and farmland loans decreased 7.3% to $294.2 million at June 30, 2026, compared to $317.3 million a year earlier. Residential mortgage loans decreased 2.3% to $143.7 million, compared to $147.1 million a year earlier. Commercial loans increased 6.0% to $161.5 million, compared to $152.3 million a year ago. Commercial construction and development loans decreased 2.1% to $98.9 million, compared to $101.0 million a year ago. Home equity loans increased 5.7% to $108.6 million, residential construction loans decreased 3.2% to $45.6 million, and consumer loans decreased 19.5% to $21.5 million, compared to a year ago.

"Deposit costs continued a downward trajectory during the second quarter, reflecting the strength of our core deposit base and the favorable repricing of maturing CDs, and we anticipate deposit costs will remain well-managed throughout the remainder of the year, even as the interest rate environment evolves," said Miranda Spaulding, Chief Financial Officer.

Total deposits increased to $1.79 billion at June 30, 2026 from $1.74 billion at June 30, 2025, and remained unchanged compared to March 31, 2026. Noninterest-bearing checking accounts represented 25.0%, interest-bearing checking accounts represented 11.9%, savings accounts represented 11.8%, money market accounts comprised 25.2% and time certificates of deposit made up 26.1% of the total deposit portfolio at June 30, 2026. The average cost of total deposits was 1.49% in the second quarter of 2026, compared to 1.52% in the preceding quarter and 1.62% in the second quarter of 2025. The estimated amount of uninsured deposits was approximately $359.8 million, or 20% of total deposits, at June 30, 2026, compared to $354.1 million, or 20% of total deposits, at March 31, 2026.

FHLB advances and other borrowings decreased to $52.1 million at June 30, 2026, compared to $119.4 million at June 30, 2025, and increased compared to $26.7 million at March 31, 2026. The average cost of FHLB advances and other borrowings was 5.30% in the second quarter of 2026, compared to 5.46% in the preceding quarter and 4.65% in the second quarter of 2025. Other borrowings at June 30, 2026 include the Company’s line of credit draw for $13.0 million at an average rate of 6.34% for the second quarter of 2026, compared to $15.0 million at an average rate of 6.34% for the first quarter of 2026.

Shareholders’ equity was $197.4 million at June 30, 2026, compared to $180.6 million a year earlier and $193.0 million three months earlier. Book value per share of $24.78 at June 30, 2026, increased 9.1%, compared to $22.72 a year earlier, and increased 2.3%, compared to $24.22 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, of $20.07 at June 30, 2026, increased 12.4%, compared to $17.86 a year earlier and increased 3.0%, compared to $19.48 three months earlier.

Operating Results

"Our net interest margin improved four-basis points sequentially and expanded 24-basis points over the same period last year, as a meaningful decline in funding costs more than offset modest compression in earning asset yields. With the policy backdrop now pointing toward the potential for rate increases, we are closely monitoring the impact on our liability costs and remain focused on balance sheet positioning to help sustain net interest margin," said Spaulding.

Eagle’s NIM was 4.15% in the second quarter of 2026, compared to 4.11% in the preceding quarter and 3.91% in the second quarter a year ago. The interest accretion on acquired loans totaled $94,000 and resulted in a two-basis point increase in the NIM during the second quarter of 2026, compared to $185,000 and a four-basis point increase in the NIM during the preceding quarter. Average yields on interest earning assets for the second quarter of 2026 were 5.77%, compared to 5.76% in the first quarter of 2026 and 5.85% in the second quarter a year ago. Funding costs for the second quarter of 2026 decreased to 2.12%, compared to 2.15% in the first quarter of 2026 and 2.45% in the second quarter of 2025. For the first six months of 2026, NIM expanded 31 basis points to 4.13% compared to 3.82% for the first six months of 2025.

Net interest income, before the provision for credit losses, was $19.1 million in the second quarter of 2026, compared to $18.7 million in the first quarter of 2026, and increased 5.5% compared to $18.1 million in the second quarter of 2025. Year-to-date, net interest income increased 8.0% to $37.8 million, compared to $35.0 million in the same period one year earlier.

Revenues for the second quarter of 2026 were $24.2 million, compared to $23.6 million in the preceding quarter and increased 5.2% compared to $23.0 million in the second quarter a year ago. In the first six months of 2026, revenues were $47.7 million, an 8.8% increase compared to $43.9 million in the first six months of 2025.

Total noninterest income was $5.0 million in the second quarter of 2026, compared to $4.9 million in the preceding quarter, and increased 4.4% compared to $4.8 million in the second quarter a year ago. In the first six months of 2026, noninterest income increased 12.2% to $9.9 million, compared to $8.8 million in the first six months of 2025. Net mortgage banking income, the largest component of noninterest income, totaled $2.9 million in the second quarter of 2026, compared to $2.4 million in the preceding quarter and $2.9 million in the second quarter a year ago. Net mortgage banking income increased 6.0% to $5.4 million in the first six months of 2026, compared to $5.1 million in the first six months of 2025.

"We continue to apply careful financial discipline, all while prioritizing investment in the areas we are confident will drive the greatest long-term impact," said Darryl Rensmon, President and Chief Operating Officer. Eagle’s second quarter noninterest expense was $19.0 million, compared to $18.2 million in the preceding quarter, and increased 5.9% compared to $17.9 million in the second quarter of 2025. In the first six months of 2026, noninterest expense increased 6.5% to $37.2 million, compared to $34.9 million in the first six months of 2025. The increases to the quarterly and year-to-date non-interest expense relate primarily to increases in salaries and employee benefits.

For the second quarter of 2026, the Company recorded income tax expense of $1.1 million, compared to $1.1 million in the preceding quarter and $751,000 in the second quarter of 2025. The effective tax rate for the second quarter of 2026 was 22.9%, compared to 21.8% for the first quarter of 2026 and 18.8% for the second quarter of 2025. The year-to-date effective tax rate was 22.3% for 2026 compared to 17.6% for the same period in 2025. The effective tax rate has increased as the Company’s pretax earnings have increased at a faster pace than tax exempt income.

Credit Quality

Eagle recorded a $343,000 provision for credit losses for the second quarter of 2026, compared to a $279,000 provision for credit losses in the preceding quarter and a $1.0 million provision for credit losses in the second quarter a year ago. The allowance for credit losses represented 423.5% of nonperforming loans at June 30, 2026, compared to 315.0% three months earlier and 348.8% a year earlier. Nonperforming loans were $4.2 million at June 30, 2026, $5.5 million at March 31, 2026, and $5.1 million a year earlier. Net loan charge-offs totaled $193,000 in the second quarter of 2026, compared to $49,000 in the preceding quarter and $48,000 in the second quarter a year ago. The allowance for credit losses was $17.6 million, or 1.13% of total loans, at June 30, 2026, compared to $17.4 million, or 1.15% of total loans, at March 31, 2026, and $17.7 million, or 1.13% of total loans a year ago.

Capital Management

Eagles’s ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 7.66% at June 30, 2026, up from 6.77% a year ago and 7.55% three months earlier. This ratio is a non-GAAP financial measure. For the most comparable GAAP financial measure, see "Reconciliation of Non-GAAP Financial Measures" below. The Bank’s Tier 1 capital to adjusted total average assets was 10.93% as of June 30, 2026. As of June 30, 2026, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized.

About the Company

Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 30 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol "EBMT."

Forward Looking Statements

This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as "believe," "will" "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions, expectations and anticipations; statements regarding our business plans, prospects, mergers, expense management initiatives, deposit costs, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, including the U.S. direct involvement in war in the Middle East, either nationally or in our market areas, that are worse than expected; the emergence or continuation of widespread health emergencies or pandemics, including steps taken by governmental and other authorities to contain, mitigate and combat such emergencies or pandemics; the impact of volatility in the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; the direct or indirect impact of any new regulatory, policy or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including the implementation of tariffs and other protectionist trade policies, including any reciprocal tariffs by foreign countries, and any uncertainties related thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; an inability to access capital markets or maintain deposits or borrowing costs or unexpected outflows of deposits which may require us to sell investment securities at a loss; limitations on Eagle’s ability to receive dividends from its subsidiaries; competition among banks, financial holding companies and other traditional and non-traditional financial service providers; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; possible changes in governmental monetary and fiscal policies; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; Eagle’s ability to assess and monitor the effect of evolving uses of artificial intelligence on its business and operations; the effects of any U.S. federal government shutdown, or closures or significant staff reductions in agencies regulating our business; our ability to navigate differing social, environmental, and sustainability concerns among governmental administrations, our stakeholders and other activists that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

Use of Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, this release, including the Additional Financial Information contains non-GAAP financial measures. Non-GAAP financial measures in this release include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common shareholders’ equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance, performance trends and financial condition, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts.

The numerator for the core efficiency ratio is calculated by subtracting intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Eagle strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. A reconciliation of the GAAP and non-GAAP financial measures is presented below.

Balance Sheet
(Dollars in thousands, except per share data)						(Unaudited)
			June 30,			March 31,			June 30,
				2026			2026			2025

Assets:
	Cash and due from banks		$	26,127		$	19,420		$	25,701
	Interest-bearing deposits in banks			2,833			34,217			1,183
	Federal funds sold			-			96			44
		Total cash and cash equivalents		28,960			53,733			26,928
	Securities available-for-sale, at fair value			285,676			274,887			285,023
	Federal Home Loan Bank ("FHLB") stock			5,001			2,734			7,000
	Federal Reserve Bank ("FRB") stock			4,131			4,131			4,131
	Mortgage loans held-for-sale, at fair value			15,972			9,904			13,651
	Loans:
	Real estate loans:
	Residential 1-4 family			143,748			145,070			147,143
	Residential 1-4 family construction			45,628			43,714			47,146
	Commercial real estate			684,381			667,685			675,285
	Commercial construction and development			98,851			98,282			100,984
	Farmland			157,275			160,664			162,182
	Other loans:
	Home equity			108,629			109,278			102,778
	Consumer			21,459			23,154			26,658
	Commercial			161,457			151,580			152,335
	Agricultural			136,916			119,859			155,151
		Total loans		1,558,344			1,519,286			1,569,662
	Allowance for credit losses			(17,640	)		(17,430	)		(17,730	)
		Net loans		1,540,704			1,501,856			1,551,932
	Accrued interest and dividends receivable			14,242			13,613			14,674
	Mortgage servicing rights, net			14,885			14,909			15,120
	Assets held-for-sale, at cost			-			-			703
	Premises and equipment, net			99,947			100,556			100,909
	Cash surrender value of life insurance, net			55,460			55,062			53,958
	Goodwill			34,740			34,740			34,740
	Core deposit intangible, net			2,798			3,045			3,885
	Other assets			23,331			22,681			24,979
		Total assets	$	2,125,847		$	2,091,851		$	2,137,633

Liabilities:
	Deposit accounts:
	Noninterest-bearing		$	448,260		$	437,574		$	417,324
	Interest-bearing			1,341,944			1,348,502			1,320,601
		Total deposits		1,790,204			1,786,076			1,737,925
	Accrued expenses and other liabilities			41,628			41,670			40,439
	FHLB advances and other borrowings			52,102			26,667			119,407
	Other long-term debt, net			44,508			44,479			59,224
		Total liabilities		1,928,442			1,898,892			1,956,995

Shareholders' Equity:
	Preferred stock (par value $0.01 per share; 1,000,000 shares
	authorized; no shares issued or outstanding)			-			-			-
	Common stock (par value $0.01 per share; 20,000,000 shares authorized;
	8,507,429 shares issued; 7,965,431, 7,965,431 and 7,952,177
	shares outstanding at June 30, 2026, March 31,2026, and
	June 30, 2025, respectively)			85			85			85
	Additional paid-in capital			108,271			108,072			108,590
	Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")			(3,151	)		(3,294	)		(3,724	)
	Treasury stock, at cost (541,998, 541,998 and 555,252 shares at
	June 30, 2026, March 31, 2026, and June 30, 2025, respectively)			(11,374	)		(11,374	)		(11,925	)
	Retained earnings			116,910			114,350			105,470
	Accumulated other comprehensive loss, net of tax			(13,336	)		(14,880	)		(17,858	)
		Total shareholders' equity		197,405			192,959			180,638
		Total liabilities and shareholders' equity	$	2,125,847		$	2,091,851		$	2,137,633

Income Statement					(Unaudited)				(Unaudited)
(Dollars in thousands, except per share data)			Three Months Ended						Six Months Ended
			June 30,		March 31,		June 30,		June 30,
				2026		2026		2025		2026		2025
Interest and dividend income:
	Interest and fees on loans		$	24,088	$	23,570	$	24,442	$	47,658	$	47,762
	Securities available-for-sale			2,297		2,215		2,397		4,512		4,848
	FHLB and FRB dividends			112		138		236		250		496
	Other interest income			114		299		75		413		113
		Total interest and dividend income		26,611		26,222		27,150		52,833		53,219
Interest expense:
	Deposits			6,633		6,661		6,877		13,294		13,748
	FHLB advances and other borrowings			393		412		1,459		805		3,085
	Other long-term debt			447		446		669		893		1,339
		Total interest expense		7,473		7,519		9,005		14,992		18,172
Net interest income				19,138		18,703		18,145		37,841		35,047
Provision for credit losses				343		279		1,038		622		1,080
		Net interest income after provision for credit losses		18,795		18,424		17,107		37,219		33,967

Noninterest income:
	Service charges on deposit accounts			419		408		393		827		782
	Mortgage banking, net			2,920		2,434		2,926		5,354		5,051
	Interchange and ATM fees			711		628		670		1,339		1,263
	Appreciation in cash surrender value of life insurance			407		362		393		769		743
	Other noninterest income			560		1,049		425		1,609		984
		Total noninterest income		5,017		4,881		4,807		9,898		8,823

Noninterest expense:
	Salaries and employee benefits			11,712		10,814		10,645		22,526		20,309
	Occupancy and equipment expense			2,220		2,560		2,230		4,780		4,532
	Data processing			1,332		1,255		1,305		2,587		2,635
	Software subscriptions			610		571		715		1,181		1,373
	Advertising			328		301		280		629		512
	Amortization			249		271		298		520		618
	Loan costs			388		365		354		753		726
	Federal Deposit Insurance Corporation ("FDIC") insurance premiums			236		235		257		471		488
	Professional and examination fees			420		382		391		802		911
	Other noninterest expense			1,497		1,457		1,451		2,954		2,828
		Total noninterest expense		18,992		18,211		17,926		37,203		34,932

Income before provision for income taxes				4,820		5,094		3,988		9,914		7,858
Provision for income taxes				1,105		1,110		751		2,215		1,382
Net income			$	3,715	$	3,984	$	3,237	$	7,699	$	6,476

Basic earnings per common share			$	0.47	$	0.51	$	0.42	$	0.98	$	0.83
Diluted earnings per common share			$	0.47	$	0.51	$	0.41	$	0.98	$	0.83

Basic weighted average shares outstanding				7,827,552		7,818,831		7,791,320		7,823,216		7,801,726

Diluted weighted average shares outstanding				7,862,465		7,844,457		7,812,656		7,855,238		7,819,113

ADDITIONAL FINANCIAL INFORMATION						(Unaudited)
(Dollars in thousands, except per share data)			Three Months Ended or Years Ended
			June 30,			March 31,			June 30,
				2026			2026			2025

Mortgage Banking Activity (For the quarter):
	Net gain on sale of mortgage loans		$	2,225		$	1,678		$	2,083
	Net change in fair value of loans held-for-sale and derivatives			9			138			105
	Mortgage servicing income, net			686			618			738
		Mortgage banking, net	$	2,920		$	2,434		$	2,926

Mortgage Banking Activity (Year-to-date):
	Net gain on sale of mortgage loans		$	3,903					$	3,432
	Net change in fair value of loans held-for-sale and derivatives			147						(10	)
	Mortgage servicing income, net			1,304						1,629
		Mortgage banking, net	$	5,354					$	5,051

Performance Ratios (For the quarter):
	Return on average assets			0.71	%		0.76	%		0.61	%
	Return on average equity			7.57	%		8.16	%		7.23	%
	Yield on average interest earning assets			5.77	%		5.76	%		5.85	%
	Cost of funds			2.12	%		2.15	%		2.45	%
	Net interest margin			4.15	%		4.11	%		3.91	%
	Core efficiency ratio*			77.59	%		76.07	%		76.80	%

Performance Ratios (Year-to-date):
	Return on average assets			0.74	%					0.62	%
	Return on average equity			7.86	%					7.27	%
	Yield on average interest earning assets			5.76	%					5.81	%
	Cost of funds			2.14	%					2.49	%
	Net interest margin			4.13	%					3.82	%
	Core efficiency ratio*			76.84	%					78.22	%

Asset Quality Ratios and Data:			As of or for the Three Months Ended
			June 30,			March 31,			June 30,
				2026			2026			2025

	Nonaccrual loans		$	2,961		$	2,328		$	2,423
	Loans 90 days past due and still accruing			1,204			3,206			2,660
		Total nonperforming loans		4,165			5,534			5,083
	Other real estate owned and other repossessed assets			70			70			86
		Total nonperforming assets	$	4,235		$	5,604		$	5,169

	Nonperforming loans / portfolio loans			0.27	%		0.36	%		0.32	%
	Nonperforming assets / assets			0.20	%		0.27	%		0.24	%
	Allowance for credit losses / portfolio loans			1.13	%		1.15	%		1.13	%
	Allowance for credit losses/ nonperforming loans			423.53	%		314.96	%		348.81	%
	Gross loan charge-offs for the quarter		$	201		$	54		$	51
	Gross loan recoveries for the quarter		$	8		$	5		$	3
	Net loan charge-offs for the quarter		$	193		$	49		$	48

* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of
intangible asset amortization, by the sum of net interest income and non-interest income.

ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands, except per share data)

			June 30,			March 31,			June 30,
				2026			2026			2025
Capital Data (At quarter end):
	Common shareholders' equity (book value) per share		$	24.78		$	24.22		$	22.72
	Tangible book value per share**		$	20.07		$	19.48		$	17.86
	Shares outstanding			7,965,431			7,965,431			7,952,177
	Tangible common equity to tangible assets***			7.66	%		7.55	%		6.77	%

Other Information:
	Average investment securities for the quarter		$	281,816		$	280,552		$	287,707
	Average investment securities year-to-date		$	281,187		$	280,552		$	290,490
	Average loans for the quarter ****		$	1,548,184		$	1,525,274		$	1,554,756
	Average loans year-to-date ****		$	1,536,792		$	1,525,274		$	1,540,765
	Average earning assets for the quarter		$	1,850,906		$	1,846,375		$	1,862,024
	Average earning assets year-to-date		$	1,848,653		$	1,846,375		$	1,848,617
	Average total assets for the quarter		$	2,095,992		$	2,092,280		$	2,112,470
	Average total assets year-to-date		$	2,094,122		$	2,092,280		$	2,099,980
	Average deposits for the quarter		$	1,781,870		$	1,779,066		$	1,706,261
	Average deposits year-to-date		$	1,780,476		$	1,779,066		$	1,688,826
	Average equity for the quarter		$	196,255		$	195,349		$	179,104
	Average equity year-to-date		$	195,804		$	195,349		$	178,249

** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders' equity,
less goodwill and core deposit intangible, by common shares outstanding.
*** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders'
equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible.
**** Includes loans held for sale

Reconciliation of Non-GAAP Financial Measures

Efficiency Ratio						(Unaudited)						(Unaudited)
(Dollars in thousands)			Three Months Ended									Six Months Ended
			June 30,			March 31,			June 30,			June 30,
				2026			2026			2025			2026			2025
Calculation of Efficiency Ratio:
	Noninterest expense - efficiency ratio numerator		$	18,992		$	18,211		$	17,926		$	37,203		$	34,932

	Net interest income			19,138			18,703			18,145			37,841			35,047
	Noninterest income			5,017			4,881			4,807			9,898			8,823
		Efficiency ratio denominator		24,155			23,584			22,952			47,739			43,870

	Efficiency ratio (GAAP)			78.63	%		77.22	%		78.10	%		77.93	%		79.63	%

Calculation of Core Efficiency Ratio:
	Noninterest expense		$	18,992		$	18,211		$	17,926		$	37,203		$	34,932
	Intangible asset amortization			(249	)		(271	)		(298	)		(520	)		(618	)
		Core efficiency ratio numerator		18,743			17,940			17,628			36,683			34,314

	Net interest income			19,138			18,703			18,145			37,841			35,047
	Noninterest income			5,017			4,881			4,807			9,898			8,823
		Core efficiency ratio denominator		24,155			23,584			22,952			47,739			43,870

	Core efficiency ratio (non-GAAP)			77.59	%		76.07	%		76.80	%		76.84	%		78.22	%

Tangible Book Value and Tangible Assets			(Unaudited)
(Dollars in thousands, except per share data)			June 30,			March 31,			June 30,
				2026			2026			2025
Tangible Book Value:
	Shareholders' equity		$	197,405		$	192,959		$	180,638
	Goodwill and core deposit intangible, net			(37,538	)		(37,785	)	$	(38,625	)
		Tangible common shareholders' equity (non-GAAP)	$	159,867		$	155,174		$	142,013

	Common shares outstanding at end of period			7,965,431			7,965,431			7,952,177

	Common shareholders' equity (book value) per share (GAAP)		$	24.78		$	24.22		$	22.72

	Tangible common shareholders' equity (tangible book value)
		per share (non-GAAP)	$	20.07		$	19.48		$	17.86

Tangible Assets:
	Total assets		$	2,125,847		$	2,091,851		$	2,137,633
	Goodwill and core deposit intangible, net			(37,538	)		(37,785	)		(38,625	)
		Tangible assets (non-GAAP)	$	2,088,309		$	2,054,066		$	2,099,008

	Tangible common shareholders' equity to tangible assets
		(non-GAAP)		7.66	%		7.55	%		6.77	%

Contacts:

Laura F. Clark, CEO

        (406) 457-4007

        P. Darryl Rensmon, President and COO

        (406) 441-5005

        Miranda J. Spaulding, EVP and CFO

        (406) 441-5010