Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,”
“Eagle”), the holding company of Opportunity Bank of Montana (the
“Bank”), today reported net income of $3.2 million, or $0.42
per diluted share, in the first quarter of 2023, compared to $3.6
million, or $0.47 per diluted share, in the preceding quarter, and
$2.2 million, or $0.34 per diluted share, in the first quarter a
year ago.
Eagle’s board of directors declared a quarterly
cash dividend of $0.1375 per share on April 20, 2023. The dividend
will be payable June 2, 2023 to shareholders of record May 12,
2023. The current dividend represents an annualized yield of 3.97%
based on recent market prices.
“We delivered strong first quarter 2023
earnings, despite the current challenges facing the banking
industry,” said Laura F. Clark, President and CEO. “First quarter
loan growth totaled $23.7 million and was well diversified across
our loan categories. Additionally, our acquisition of First
Community Bank (“First Community”), which was completed during the
second quarter of 2022, is contributing positively to operating
results. The transaction was valued at approximately $38.6 million
and added approximately $370 million in assets, $321 million in
deposits and $191 million in loans. While our outlook for the
remainder of 2023 remains cautious, and we anticipate a leaner loan
pipeline as recessionary concerns continue and deposit pricing
pressures persist, we are well positioned for stable growth in the
year ahead.”
On January 1, 2023, Eagle implemented the
Current Expected Credit Losses (“CECL”) standard, which resulted in
a $700,000 increase to the allowance for credit losses and was
offset in shareholders’ equity and deferred tax assets.
First Quarter 2023 Highlights
(at or for the three-month period ended March 31, 2023, except
where noted):
- Net income was $3.2 million, or
$0.42 per diluted share, in the first quarter of 2023, compared to
$3.6 million, or $0.47 per diluted share, in the preceding quarter,
and $2.2 million, or $0.34 per diluted share, in the first quarter
a year ago.
- Net interest margin (“NIM”) was
3.86% in the first quarter of 2023, compared to 4.10% in the
preceding quarter, and 3.64% in the first quarter a year ago.
- Revenues (net interest income
before the provision for credit losses, plus noninterest income)
decreased 7.9% to $21.1 million in the first
quarter of 2023, compared to $22.9 million in the preceding quarter
and increased 8.5% compared to $19.5 million
in the first quarter a year ago.
- The Company recorded a discount on
loans acquired from First Community of $5.4 million at April 30,
2022 of which $3.8 million remained as of March 31, 2023.
- The remaining discount on loans
from acquisitions prior to 2022 totaled $671,000 as of
March 31, 2023.
- The accretion of the loan purchase
discount into loan interest income from acquisitions, was $354,000
in the first quarter of 2023, compared to accretion on purchased
loans from acquisitions of $267,000 in the preceding quarter.
- The allowance for credit losses
represented 1.09% of portfolio loans and 134.5% of nonperforming
loans at March 31, 2023. The allowance for loan losses represented
1.32% and 202.9% of nonperforming loans at March 31, 2022.
- Total loans increased 43.7% to
$1.38 billion, at March 31, 2023, compared to $958.7 million a year
earlier, and increased 1.8% compared to $1.35 billion at December
31, 2022.
- Total deposits increased 26.5% to
$1.61 billion at March 31, 2023, from $1.27 billion a year ago, and
decreased 1.7% compared to $1.64 billion at December 31, 2022.
- Available borrowing capacity was
approximately $367.1 million:
|
|
|
|
|
March 31, 2023 |
|
(Dollars in thousands) |
|
|
Borrowings Outstanding |
|
Remaining BorrowingCapacity |
|
Federal Home Loan Bank advances |
|
$ |
122,530 |
|
|
$ |
249,100 |
|
|
Federal Reserve Bank discount window |
|
- |
|
|
|
33,000 |
|
|
Correspondent bank lines of credit |
|
|
- |
|
|
|
85,000 |
|
|
Total |
|
|
|
$ |
122,530 |
|
|
$ |
367,100 |
|
| |
|
|
|
|
|
- The Company paid a quarterly cash
dividend in the first quarter of $0.1375 per share on March 3, 2023
to shareholders of record
February 10, 2023.
Balance Sheet ResultsEagle’s
total assets increased 32.9% to $1.98 billion at March 31, 2023,
compared to $1.49 billion a year ago, and increased 1.7% from $1.95
billion three months earlier. The year over year increase was
impacted by the First Community acquisition that closed during the
second quarter of 2022.
The investment securities portfolio totaled
$349.4 million at March 31, 2023, compared to $264.6 million a
year ago, and $349.5 million at December 31, 2022.
Eagle originated $69.6 million in new
residential mortgages during the quarter and sold $62.4 million in
residential mortgages, with an average gross margin on sale of
mortgage loans of approximately 3.53%. This production compares to
residential mortgage originations of $95.3 million in the preceding
quarter with sales of $107.1 million and an average gross margin on
sale of mortgage loans of approximately 2.77%.
Total loans increased $418.7 million or 43.7%
compared to a year ago, and $23.7 million or 1.8% from three months
earlier. Commercial real estate loans increased 26.0% to $545.6
million at March 31, 2023, compared to $433.0 million a year
earlier. Agricultural and farmland loans increased 110.3% to $231.8
million at March 31, 2023, compared to $110.2 million a year
earlier. Commercial construction and development loans increased
57.4% to $166.5 million, compared to $105.8 million a year
ago. Residential mortgage loans increased 36.8% to $135.7 million,
compared to $99.2 million a year earlier. Commercial loans
increased 33.2% to $131.2 million, compared to $98.5 million a year
ago. Home equity loans increased 45.3% to $78.2 million,
residential construction loans increased 49.7% to
$61.3 million, and consumer loans increased 53.0% to $28.8
million, compared to a year ago.
Total deposits increased 26.5% to $1.61 billion
at March 31, 2023, compared to $1.27 billion at March 31, 2022, and
decreased slightly by 1.7% from $1.64 billion at December 31, 2022.
Noninterest-bearing checking accounts represented 28.6%,
interest-bearing checking accounts represented 14.8%, savings
accounts represented 16.1%, money market accounts comprised 20.8%
and time certificates of deposit made up 19.7% of the total deposit
portfolio at March 31, 2023. The average cost of deposits was
0.62% in the first quarter of 2023, compared to 0.40% in the
preceding quarter and 0.10% in the first quarter of 2022.
Shareholders’ equity was $164.1 million at March
31, 2023, compared to $143.5 million a year earlier and
$158.4 million three months earlier. Book value per share was
$20.50 at March 31, 2023, compared to $21.44 a year earlier and
$19.79 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, was $15.28 at March 31, 2023, compared to $18.08 a
year earlier and $14.52 three months earlier.
Operating Results“NIM expanded
22 basis points during the first quarter of 2023, compared to the
first quarter a year ago, as we benefitted from interest rate
increases enacted by the Federal Reserve which resulted in higher
loan yields. However, higher funding costs led to a 24 basis point
reduction in first quarter NIM compared to the preceding quarter,”
said Clark.
Eagle’s NIM was 3.86% in the first quarter of
2023, compared to 4.10% in the preceding quarter, and 3.64% in the
first quarter a year ago. The interest accretion on acquired loans
totaled $354,000 and resulted in a eight basis-point increase in
the NIM during the first quarter of 2023, compared to $267,000 and
a six basis-point increase in the NIM during the preceding quarter.
Average yields on interest earning assets for the first quarter
increased to 4.87% from 4.72% in the fourth quarter of 2022 and
3.92% in the first quarter a year ago.
Eagle’s first quarter revenues decreased 7.9% to
$21.1 million, compared to $22.9 million in the preceding quarter
and increased 8.5% compared to $19.5 million in the first quarter a
year ago.
Net interest income, before the provision for
credit losses, decreased 6.7% to $16.4 million in the first
quarter, compared to $17.6 million in the fourth quarter of 2022,
and increased 38.7% compared to $11.8 million in the first quarter
of 2022.
Eagle’s total noninterest income decreased 11.9%
to $4.7 million in the first quarter of 2023, compared to $5.3
million in the preceding quarter, and decreased 38.6% compared to
$7.6 million in the first quarter a year ago. Net mortgage banking,
the largest component of noninterest income, totaled $3.1 million
in the first quarter of 2023, compared to $3.3 million in the
preceding quarter and $6.2 million in the first quarter a year
ago.
First quarter noninterest expense decreased 8.9%
to $16.5 million, compared to $18.2 million in the preceding
quarter and increased 1.7% compared to $16.3 million in the first
quarter a year ago.
For the first quarter of 2023, the income tax
provision totaled $1.0 million, for an effective tax rate of 24.4%,
compared to $787,000 for an effective tax rate of 17.8% in the
preceding quarter, and $695,000, for an effective tax rate of 23.9%
in the first quarter of 2022.
Credit QualityBeginning January
1, 2023, the Company adopted Accounting Standards Update No.
2016-13, Financial Instruments – Credit Losses (Topic 326), which
replaced the former “incurred loss” model for recognizing credit
losses with an “expected loss” model referred to as the CECL model.
Utilizing CECL may have an impact on our allowance for credit
losses going forward and may result in a lack of comparability
between 2023 and 2022 quarterly periods.
The provision for credit losses was $279,000 in
the first quarter of 2023, compared to $347,000 in the preceding
quarter and $279,000 in the first quarter a year ago. The allowance
for credit losses represented 134.5% of nonperforming loans at
March 31, 2023, compared to 180.0% three months earlier and 202.9%
a year earlier. Nonperforming loans were $11.2 million at March 31,
2023, $7.8 million at December 31, 2022, and $6.3 million a
year earlier.
Eagle had no other real estate owned and other
repossessed assets on its books at March 31, 2023, or at
December 31, 2022. This compared to $346,000 at
March 31, 2022.
Net loan recoveries totaled $21,000 in the first
quarter of 2023, compared to net loan charge-offs of $197,000 in
the preceding quarter and net loan charge-offs of $79,000 in the
first quarter a year ago. The allowance for credit losses was $15.0
million, or 1.09% of total loans, at March 31, 2023, compared to
$14.0 million, or 1.03% of total loans, at December 31, 2022, and
$12.7 million, or 1.32% of total loans, a year ago.
Capital ManagementThe 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) decreased to
6.30% at March 31, 2023 from 8.24% a year ago and increased from
6.10% three months earlier. Shareholders’ equity has been impacted
by an accumulated other comprehensive loss related to securities
available-for-sale. These unrealized losses are primarily a result
of rapid increases in interest rates. As of March 31, 2023, the
Bank’s regulatory capital was in excess of all applicable
regulatory requirements and is deemed well capitalized. The Bank’s
Tier 1 capital to adjusted total average assets was 9.93% as of
March 31, 2023.
Stock Repurchase AuthorityEagle
announced that its Board of Directors has authorized the repurchase
of up to 400,000 shares of its common stock beginning May 1, 2023,
representing approximately 5.0% of outstanding shares. Under the
plan, shares may be purchased by the company on the open market or
in privately negotiated transactions. The extent to which the
Company repurchases its shares and the timing of such repurchase
will depend upon market conditions and other corporate
considerations. The plan is expected to be in place for
approximately 12 months, but may be suspended, terminated or
modified by the Company’s Board of Directors at any time. The plan
does not obligate the Company to purchase any particular number of
shares.
About the CompanyEagle 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 32 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 StatementsThis
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 and expectations; statements
regarding our business plans, prospects, mergers, growth and
operating strategies; statements regarding the current global
COVID-19 pandemic, 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, either nationally or in
our market areas, that are worse than expected; the duration and
impact of the COVID-19 pandemic, including but not limited to
vaccine efficacy and immunization rates, new variants, steps taken
by governmental and other authorities to contain, mitigate and
combat the pandemic, adverse effects on our employees, customers
and third-party service providers, the increase in cyberattacks in
the current work-from-home environment, the ultimate extent of the
impacts on our business, financial position, results of operations,
liquidity and prospects, continued deterioration in general
business and economic conditions could adversely affect our
revenues and the values of our assets and liabilities, lead to a
tightening of credit and increase stock price volatility, and
potential impairment charges; the impact of adverse developments
affecting the U.S. banking industry, including bank failures and
liquidity concerns, which could cause continued or worsening
economic and market volatility, and regulatory responses 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;
competition among depository and other financial institutions; 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; 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; cyber incidents, or theft or loss of
Company or customer data or money; our ability to appropriately
address social, environmental, and sustainability concerns that may
arise from our business activities; the effect of our recent
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
MeasuresIn addition to results presented in accordance
with generally accepted accounting principles utilized in the
United States, or GAAP, the Financial Ratios and Other Data
contains non-GAAP financial measures. Non-GAAP disclosures include:
1) core efficiency ratio, 2) tangible book value per share, 3)
tangible common equity to tangible assets, 4) earnings per diluted
share, excluding acquisition costs and related taxes and 5) return
on average assets, excluding acquisition costs and related taxes.
The Company uses these non-GAAP financial measures to provide
meaningful supplemental information regarding the Company’s
operational performance and performance trends, 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 acquisition costs and 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.
Reconciliation of the GAAP and non-GAAP financial measures are
presented below.
|
Balance Sheet |
|
(Dollars in thousands, except per share data) |
|
(Unaudited) |
| |
|
|
|
March 31, |
December 31, |
March, 31 |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
| |
|
|
|
|
|
|
|
Assets: |
|
|
|
|
| |
Cash and due from banks |
|
$ |
18,087 |
|
$ |
19,321 |
|
$ |
17,516 |
|
| |
Interest bearing deposits in banks |
|
|
1,348 |
|
|
2,490 |
|
|
62,697 |
|
| |
Federal funds sold |
|
|
- |
|
|
- |
|
|
14,889 |
|
| |
|
Total cash and cash equivalents |
|
|
19,435 |
|
|
21,811 |
|
|
95,102 |
|
| |
Securities available-for-sale |
|
|
349,423 |
|
|
349,495 |
|
|
264,635 |
|
| |
Federal Home Loan Bank ("FHLB") stock |
|
|
7,360 |
|
|
5,089 |
|
|
1,723 |
|
| |
Federal Reserve Bank ("FRB") stock |
|
|
4,131 |
|
|
4,131 |
|
|
2,974 |
|
| |
Mortgage loans held-for-sale, at fair value |
|
|
9,927 |
|
|
8,250 |
|
|
22,295 |
|
| |
Loans: |
|
|
|
|
| |
Real estate loans: |
|
|
|
|
| |
Residential 1-4 family |
|
|
135,714 |
|
|
135,947 |
|
|
99,242 |
|
| |
Residential 1-4 family construction |
|
|
61,333 |
|
|
59,756 |
|
|
40,968 |
|
| |
Commercial real estate |
|
|
545,631 |
|
|
539,070 |
|
|
432,976 |
|
| |
Commercial construction and development |
|
|
166,461 |
|
|
151,145 |
|
|
105,754 |
|
| |
Farmland |
|
|
139,283 |
|
|
136,334 |
|
|
60,363 |
|
| |
Other loans: |
|
|
|
|
| |
Home equity |
|
|
78,209 |
|
|
74,271 |
|
|
53,828 |
|
| |
Consumer |
|
|
28,812 |
|
|
27,609 |
|
|
18,834 |
|
| |
Commercial |
|
|
131,179 |
|
|
127,255 |
|
|
98,471 |
|
| |
Agricultural |
|
|
92,471 |
|
|
104,036 |
|
|
49,836 |
|
| |
Unearned loan fees |
|
|
(1,670 |
) |
|
(1,745 |
) |
|
(1,591 |
) |
| |
|
Total loans |
|
|
1,377,423 |
|
|
1,353,678 |
|
|
958,681 |
|
| |
Allowance for credit losses (1) |
|
|
(15,000 |
) |
|
(14,000 |
) |
|
(12,700 |
) |
| |
|
Net loans |
|
|
1,362,423 |
|
|
1,339,678 |
|
|
945,981 |
|
| |
Accrued interest and dividends receivable |
|
|
10,427 |
|
|
11,284 |
|
|
5,750 |
|
| |
Mortgage servicing rights, net |
|
|
15,875 |
|
|
15,412 |
|
|
14,288 |
|
| |
Assets held-for-sale, at fair value |
|
|
1,305 |
|
|
1,305 |
|
|
- |
|
| |
Premises and equipment, net |
|
|
86,614 |
|
|
84,323 |
|
|
69,536 |
|
| |
Cash surrender value of life insurance, net |
|
|
47,985 |
|
|
47,724 |
|
|
36,681 |
|
| |
Goodwill |
|
|
34,740 |
|
|
34,740 |
|
|
20,798 |
|
| |
Core deposit intangible, net |
|
|
7,043 |
|
|
7,459 |
|
|
1,660 |
|
| |
Other assets |
|
|
25,648 |
|
|
17,683 |
|
|
10,630 |
|
| |
|
Total assets |
|
$ |
1,982,336 |
|
$ |
1,948,384 |
|
$ |
1,492,053 |
|
| |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
| |
Deposit accounts: |
|
|
|
|
| |
Noninterest bearing |
|
|
460,195 |
|
|
468,955 |
|
|
371,818 |
|
| |
Interest bearing |
|
|
1,147,343 |
|
|
1,166,317 |
|
|
898,758 |
|
| |
|
Total deposits |
|
|
1,607,538 |
|
|
1,635,272 |
|
|
1,270,576 |
|
| |
Accrued expenses and other liabilities |
|
|
29,265 |
|
|
26,458 |
|
|
18,968 |
|
| |
FHLB advances and other borrowings |
|
|
122,530 |
|
|
69,394 |
|
|
- |
|
| |
Other long-term debt, net |
|
|
58,887 |
|
|
58,844 |
|
|
58,986 |
|
| |
|
Total liabilities |
|
|
1,818,220 |
|
|
1,789,968 |
|
|
1,348,530 |
|
| |
|
|
|
|
|
|
|
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; 20,000,000 shares authorized; |
|
|
|
| |
8,507,429, 8,507,429 and 7,110,833 shares issued; 8,006,033, |
|
|
|
| |
8,006,033 and 6,694,811 shares outstanding at March 31, 2023, |
|
|
|
| |
December 31, 2022 and March 31, 2022, respectively |
|
|
85 |
|
|
85 |
|
|
71 |
|
| |
Additional paid-in capital |
|
|
109,265 |
|
|
109,164 |
|
|
80,960 |
|
| |
Unallocated common stock held by Employee Stock Ownership Plan |
|
(5,013 |
) |
|
(5,156 |
) |
|
(5,586 |
) |
| |
Treasury stock, at cost (501,396, 501,396 and 416,022 shares
at |
|
|
|
| |
March 31, 2023, December 31, 2022 and March 31, 2022,
respectively) |
|
(11,343 |
) |
|
(11,343 |
) |
|
(9,592 |
) |
| |
Retained earnings |
|
|
93,647 |
|
|
92,023 |
|
|
86,750 |
|
| |
Accumulated other comprehensive loss, net of tax |
|
|
(22,525 |
) |
|
(26,357 |
) |
|
(9,080 |
) |
| |
|
Total shareholders' equity |
|
|
164,116 |
|
|
158,416 |
|
|
143,523 |
|
| |
|
Total liabilities and shareholders' equity |
$ |
1,982,336 |
|
$ |
1,948,384 |
|
$ |
1,492,053 |
|
| |
|
|
|
|
|
|
|
(1) Allowance for credit losses on loans at March 31, 2023;
allowance for loan losses for prior periods. |
|
Income Statement |
|
(Unaudited) |
|
(Dollars in thousands, except per share data) |
|
Three Months Ended |
|
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Interest and dividend income: |
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
17,737 |
|
$ |
17,420 |
|
$ |
11,373 |
|
|
|
Securities available-for-sale |
|
|
2,843 |
|
|
2,716 |
|
|
1,297 |
|
|
|
FRB and FHLB dividends |
|
|
107 |
|
|
142 |
|
|
59 |
|
|
|
Other interest income |
|
|
21 |
|
|
22 |
|
|
39 |
|
|
|
|
Total interest and dividend income |
|
|
20,708 |
|
|
20,300 |
|
|
12,768 |
|
|
Interest expense: |
|
|
|
|
|
|
Interest expense on deposits |
|
|
2,460 |
|
|
1,673 |
|
|
312 |
|
|
|
FHLB advances and other borrowings |
|
|
1,142 |
|
|
357 |
|
|
6 |
|
|
|
Other long-term debt |
|
|
678 |
|
|
657 |
|
|
605 |
|
|
|
|
Total interest expense |
|
|
4,280 |
|
|
2,687 |
|
|
923 |
|
|
Net interest income |
|
|
16,428 |
|
|
17,613 |
|
|
11,845 |
|
|
Provision for credit losses (1) |
|
|
279 |
|
|
347 |
|
|
279 |
|
|
|
|
Net interest income after provision for credit losses |
|
|
16,149 |
|
|
17,266 |
|
|
11,566 |
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
339 |
|
|
445 |
|
|
331 |
|
|
|
Mortgage banking, net |
|
|
3,050 |
|
|
3,306 |
|
|
6,245 |
|
|
|
Interchange and ATM fees |
|
|
577 |
|
|
707 |
|
|
453 |
|
|
|
Appreciation in cash surrender value of life insurance |
|
|
280 |
|
|
287 |
|
|
207 |
|
|
|
Net loss on sale of available-for-sale securities |
|
|
(224 |
) |
|
- |
|
|
- |
|
|
|
Other noninterest income |
|
|
649 |
|
|
555 |
|
|
372 |
|
|
|
|
Total noninterest income |
|
|
4,671 |
|
|
5,300 |
|
|
7,608 |
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
Salaries and employee benefits |
|
|
9,693 |
|
|
11,010 |
|
|
10,381 |
|
|
|
Occupancy and equipment expense |
|
|
2,073 |
|
|
2,160 |
|
|
1,678 |
|
|
|
Data processing |
|
|
1,212 |
|
|
1,367 |
|
|
1,251 |
|
|
|
Advertising |
|
|
281 |
|
|
367 |
|
|
285 |
|
|
|
Amortization |
|
|
418 |
|
|
439 |
|
|
122 |
|
|
|
Loan costs |
|
|
445 |
|
|
412 |
|
|
546 |
|
|
|
FDIC insurance premiums |
|
|
168 |
|
|
229 |
|
|
93 |
|
|
|
Professional and examination fees |
|
|
484 |
|
|
371 |
|
|
322 |
|
|
|
Acquisition costs |
|
|
- |
|
|
- |
|
|
317 |
|
|
|
Other noninterest expense |
|
|
1,759 |
|
|
1,802 |
|
|
1,268 |
|
|
|
|
Total noninterest expense |
|
|
16,533 |
|
|
18,157 |
|
|
16,263 |
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes |
|
|
4,287 |
|
|
4,409 |
|
|
2,911 |
|
|
Provision for income taxes |
|
|
1,045 |
|
|
787 |
|
|
695 |
|
|
Net income |
|
$ |
3,242 |
|
$ |
3,622 |
|
$ |
2,216 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.34 |
|
|
Diluted earnings per share |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.34 |
|
| |
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
7,790,188 |
|
|
7,776,145 |
|
|
6,506,133 |
|
| |
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
|
7,792,467 |
|
|
7,777,552 |
|
|
6,518,847 |
|
|
|
|
|
|
|
|
|
|
(1) Provision for credit losses on loans for the quarter ended
March 31, 2023; provision for loan losses for prior periods. |
|
ADDITIONAL FINANCIAL INFORMATION |
|
(Unaudited) |
|
|
(Dollars in thousands, except per share data) |
Three Months Ended |
| |
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Mortgage Banking Activity (For the quarter): |
|
|
|
|
|
Net gain on sale of mortgage loans |
$ |
2,203 |
|
$ |
2,965 |
|
$ |
6,233 |
|
|
|
Net change in fair value of loans held-for-sale and
derivatives |
|
(19 |
) |
|
(509 |
) |
|
(535 |
) |
|
|
Mortgage servicing income, net |
|
866 |
|
|
850 |
|
|
547 |
|
|
|
|
Mortgage banking, net |
$ |
3,050 |
|
$ |
3,306 |
|
$ |
6,245 |
|
|
|
|
|
|
|
|
|
Performance Ratios (For the quarter): |
|
|
|
|
|
Return on average assets |
|
0.67 |
% |
|
0.75 |
% |
|
0.60 |
% |
|
|
Return on average equity |
|
7.99 |
% |
|
9.38 |
% |
|
5.79 |
% |
|
|
Yield on average interest earning assets |
|
4.87 |
% |
|
4.72 |
% |
|
3.92 |
% |
|
|
Cost of funds |
|
|
1.33 |
% |
|
0.85 |
% |
|
0.40 |
% |
|
|
Net interest margin |
|
3.86 |
% |
|
4.10 |
% |
|
3.64 |
% |
|
|
Core efficiency ratio* |
|
76.38 |
% |
|
77.33 |
% |
|
81.34 |
% |
|
|
|
|
|
|
|
|
* The core efficiency ratio is a non-GAAP ratio that is calculated
by dividing non-interest expense, exclusive of acquisition |
|
costs and intangible asset amortization, by the sum of net interest
income and non-interest income. |
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Asset Quality Ratios and Data: |
As of or for the Three Months Ended |
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
| |
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
4,865 |
|
$ |
2,200 |
|
$ |
3,379 |
|
|
|
Loans 90 days past due and still accruing |
|
1,247 |
|
|
1,076 |
|
|
270 |
|
|
|
Restructured loans, net |
|
5,041 |
|
|
4,502 |
|
|
2,611 |
|
|
|
|
Total nonperforming loans |
|
11,153 |
|
|
7,778 |
|
|
6,260 |
|
|
|
Other real estate owned and other repossessed assets |
|
- |
|
|
- |
|
|
346 |
|
|
|
|
Total nonperforming assets |
$ |
11,153 |
|
$ |
7,778 |
|
$ |
6,606 |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans / portfolio loans |
|
0.81 |
% |
|
0.57 |
% |
|
0.65 |
% |
|
|
Nonperforming assets / assets |
|
0.56 |
% |
|
0.40 |
% |
|
0.44 |
% |
|
|
Allowance for credit losses / portfolio loans |
|
1.09 |
% |
|
1.03 |
% |
|
1.32 |
% |
|
|
Allowance for credit losses/ nonperforming loans |
|
134.49 |
% |
|
179.99 |
% |
|
202.88 |
% |
|
|
Gross loan charge-offs for the quarter |
$ |
1 |
|
$ |
216 |
|
$ |
92 |
|
|
|
Gross loan recoveries for the quarter |
$ |
22 |
|
$ |
19 |
|
$ |
13 |
|
|
|
Net loan (recoveries) charge-offs for the quarter |
$ |
(21 |
) |
$ |
197 |
|
$ |
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Capital Data (At quarter end): |
|
|
|
|
|
Common shareholders' equity (book value) per share |
$ |
20.50 |
|
$ |
19.79 |
|
$ |
21.44 |
|
|
|
Tangible book value per share** |
$ |
15.28 |
|
$ |
14.52 |
|
$ |
18.08 |
|
|
|
Shares outstanding |
|
8,006,033 |
|
|
8,006,033 |
|
|
6,694,811 |
|
|
|
Tangible common equity to tangible assets*** |
|
6.30 |
% |
|
6.10 |
% |
|
8.24 |
% |
|
|
|
|
|
|
|
|
Other Information: |
|
|
|
|
|
|
Average investment securities for the quarter |
$ |
345,033 |
|
$ |
348,267 |
|
$ |
273,004 |
|
|
|
Average investment securities year-to-date |
$ |
345,033 |
|
$ |
336,779 |
|
$ |
273,004 |
|
|
|
Average loans for the quarter **** |
$ |
1,366,766 |
|
$ |
1,345,776 |
|
$ |
974,177 |
|
|
|
Average loans year-to-date **** |
$ |
1,366,766 |
|
$ |
1,194,788 |
|
$ |
974,177 |
|
|
|
Average earning assets for the quarter |
$ |
1,724,802 |
|
$ |
1,705,349 |
|
$ |
1,319,999 |
|
|
|
Average earning assets year-to-date |
$ |
1,724,802 |
|
$ |
1,572,106 |
|
$ |
1,319,999 |
|
|
|
Average total assets for the quarter |
$ |
1,947,086 |
|
$ |
1,934,002 |
|
$ |
1,475,049 |
|
|
|
Average total assets year-to-date |
$ |
1,947,086 |
|
$ |
1,768,919 |
|
$ |
1,475,049 |
|
|
|
Average deposits for the quarter |
$ |
1,605,566 |
|
$ |
1,655,298 |
|
$ |
1,237,341 |
|
|
|
Average deposits year-to-date |
$ |
1,605,566 |
|
$ |
1,514,158 |
|
$ |
1,237,341 |
|
|
|
Average equity for the quarter |
$ |
162,290 |
|
$ |
154,409 |
|
$ |
153,203 |
|
|
|
Average equity year-to-date |
$ |
162,290 |
|
$ |
155,655 |
|
$ |
153,203 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
** 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 |
|
|
| |
|
|
|
|
|
|
|
|
Core Efficiency Ratio |
|
(Unaudited) |
|
|
(Dollars in thousands) |
Three Months Ended |
|
|
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Calculation of Core Efficiency Ratio: |
|
|
|
| |
Noninterest expense |
$ |
16,533 |
|
$ |
18,157 |
|
$ |
16,263 |
|
| |
Acquisition costs |
|
- |
|
|
- |
|
|
(317 |
) |
| |
Intangible asset amortization |
|
(418 |
) |
|
(439 |
) |
|
(122 |
) |
| |
|
Core efficiency ratio numerator |
|
16,115 |
|
|
17,718 |
|
|
15,824 |
|
| |
|
|
|
|
|
|
|
| |
Net interest income |
|
16,428 |
|
|
17,613 |
|
|
11,845 |
|
| |
Noninterest income |
|
4,671 |
|
|
5,300 |
|
|
7,608 |
|
| |
|
Core efficiency ratio denominator |
|
21,099 |
|
|
22,913 |
|
|
19,453 |
|
| |
|
|
|
|
|
|
|
| |
Core efficiency ratio (non-GAAP) |
|
76.38 |
% |
|
77.33 |
% |
|
81.34 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible Book Value and Tangible Assets |
|
(Unaudited) |
|
(Dollars in thousands, except per share data) |
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Tangible Book Value: |
|
|
|
|
| |
Shareholders' equity |
|
$ |
164,116 |
|
$ |
158,416 |
|
$ |
143,523 |
|
| |
Goodwill and core deposit intangible, net |
|
|
(41,783 |
) |
|
(42,199 |
) |
|
(22,458 |
) |
| |
|
Tangible common shareholders' equity (non-GAAP) |
$ |
122,333 |
|
$ |
116,217 |
|
$ |
121,065 |
|
| |
|
|
|
|
|
|
| |
Common shares outstanding at end of period |
|
8,006,033 |
|
|
8,006,033 |
|
|
6,694,811 |
|
| |
|
|
|
|
|
|
| |
Common shareholders' equity (book value) per share (GAAP) |
$ |
20.50 |
|
$ |
19.79 |
|
$ |
21.44 |
|
| |
|
|
|
|
|
|
| |
Tangible common shareholders' equity (tangible book value) |
|
|
|
| |
|
per share (non-GAAP) |
|
$ |
15.28 |
|
$ |
14.52 |
|
$ |
18.08 |
|
| |
|
|
|
|
|
|
|
Tangible Assets: |
|
|
|
|
| |
Total assets |
|
$ |
1,982,336 |
|
$ |
1,948,384 |
|
$ |
1,492,053 |
|
| |
Goodwill and core deposit intangible, net |
|
|
(41,783 |
) |
|
(42,199 |
) |
|
(22,458 |
) |
| |
|
Tangible assets (non-GAAP) |
|
$ |
1,940,553 |
|
$ |
1,906,185 |
|
$ |
1,469,595 |
|
| |
|
|
|
|
|
|
| |
Tangible common shareholders' equity to tangible assets |
|
|
|
| |
|
(non-GAAP) |
|
|
6.30 |
% |
|
6.10 |
% |
|
8.24 |
% |
| |
|
|
|
|
|
|
|
Earnings Per Diluted Share, Excluding Acquisition Costs and
Related Taxes |
(Unaudited) |
|
(Dollars in thousands, except per share data) |
Three Months Ended |
| |
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
| |
|
|
|
|
|
|
Net interest income after provision for credit losses |
$ |
16,149 |
|
$ |
17,266 |
|
$ |
11,566 |
|
|
Noninterest income |
|
|
4,671 |
|
|
5,300 |
|
|
7,608 |
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
16,533 |
|
|
18,157 |
|
|
16,263 |
|
|
|
Acquisition costs |
|
|
- |
|
|
- |
|
|
(317 |
) |
|
Noninterest expense, excluding acquisition costs (non-GAAP) |
|
16,533 |
|
|
18,157 |
|
|
15,946 |
|
|
|
|
|
|
|
|
|
Income before income taxes, excluding acquisition costs |
|
4,287 |
|
|
4,409 |
|
|
3,228 |
|
|
Provision for income taxes, excluding acquisition costs |
|
|
|
|
|
related taxes (non-GAAP) |
|
|
1,045 |
|
|
787 |
|
|
771 |
|
|
Net Income, excluding acquisition costs and related taxes
(non-GAAP) |
$ |
3,242 |
|
$ |
3,622 |
|
$ |
2,457 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share (GAAP) |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.34 |
|
|
Diluted earnings per share, excluding acquisition costs and
related |
|
|
|
|
|
taxes (non-GAAP) |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
Return on Average Assets, Excluding Acquisition Costs and
Related Taxes |
(Unaudited) |
|
(Dollars in thousands) |
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
For the quarter: |
|
|
|
|
|
|
Net income, excluding acquisition costs and related taxes
(non-GAAP)* |
$ |
3,242 |
|
$ |
3,622 |
|
$ |
2,457 |
|
|
|
Average total assets quarter-to-date |
|
$ |
1,947,086 |
|
$ |
1,934,002 |
|
$ |
1,475,049 |
|
|
|
Return on average assets, excluding acquisition costs and related
taxes (non-GAAP) |
|
0.67 |
% |
|
0.75 |
% |
|
0.67 |
% |
|
|
|
|
|
|
|
|
Year-to-date: |
|
|
|
|
|
|
Net income, excluding acquisition costs and related taxes
(non-GAAP)* |
$ |
3,242 |
|
$ |
12,475 |
|
$ |
2,457 |
|
|
|
Average total assets year-to-date |
|
$ |
1,947,086 |
|
$ |
1,768,919 |
|
$ |
1,475,049 |
|
|
|
Return on average assets, excluding acquisition costs and related
taxes (non-GAAP) |
|
0.67 |
% |
|
0.71 |
% |
|
0.67 |
% |
|
|
|
|
|
|
|
|
* See Earnings Per Diluted Share, Excluding Acquisition Costs and
Related Taxes table for GAAP to non-GAAP reconciliation. |
|
|
|
|
|
|
|
Contacts: Laura
F. Clark, President and CEO(406) 457-4007Miranda J. Spaulding, SVP
and CFO(406) 441-5010
Eagle Bancorp Montana (NASDAQ:EBMT)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Eagle Bancorp Montana (NASDAQ:EBMT)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
