# Eagle Bancorp Montana, Inc. (EBMT)

Informational only - not investment advice.

CIK: 0001478454
SIC: 6022 State Commercial Banks
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Depository Institutions](/major-group/60/) > [SIC 6022 State Commercial Banks](/industry/6022/)
Latest 10-K filed: 2026-03-09
SEC page: https://www.sec.gov/edgar/browse/?CIK=1478454
Filing source: https://www.sec.gov/Archives/edgar/data/1478454/000143774926007330/ebmt20251231_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-09 · accession 0001437749-26-007330 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001478454.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 108,411,000 USD | 2025 | verified |
| Net income | 14,835,000 USD | 2025 | verified |
| Assets | 2,106,367,000 USD | 2025 | verified |
| Free cash flow | 28,345,000 USD | 2025 | computed |
| Net margin | 13.68% | 2025 | computed |
| Revenue YoY | +4.03% | 2025 | computed |
| ROE | 7.73% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | EBMT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.7% | 21.9% | 15 | 149 |
| Revenue growth | 4.0% | 6.0% | 41 | 148 |
| FCF margin | 26.1% | 23.8% | 59 | 133 |
| ROE | 7.7% | 9.6% | 27 | 149 |
| ROA | 0.7% | 1.1% | 14 | 149 |
| Liabilities / equity | 9.98 | 8.04 | 83 | 149 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6022 State Commercial Banks, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 108411000 | USD | 2025 | 2026-03-09 |
| Net income | 14835000 | USD | 2025 | 2026-03-09 |
| Assets | 2106367000 | USD | 2025 | 2026-03-09 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001478454.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2011 | 2012 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 23,911,000 | 27,860,000 | 34,843,000 | 46,511,000 | 49,654,000 | 49,747,000 | 69,462,000 | 91,615,000 | 104,211,000 | 108,411,000 |
| Net income |  |  |  | 5,132,000 | 4,103,000 | 4,982,000 | 10,872,000 | 21,206,000 | 14,419,000 | 10,701,000 | 10,056,000 | 9,778,000 | 14,835,000 |
| Diluted EPS |  |  |  | 1.32 | 0.99 | 0.91 | 1.69 | 3.11 | 2.17 | 1.45 | 1.29 | 1.24 | 1.90 |
| Operating cash flow |  |  |  | 12,893,000 | 20,053,000 | 13,571,000 | 366,000 | 2,118,000 | 56,454,000 | 41,911,000 | 9,346,000 | 28,539,000 | 33,127,000 |
| Capital expenditures |  |  |  | 2,247,000 | 3,535,000 | 7,062,000 | 10,543,000 | 20,638,000 | 12,218,000 | 16,762,000 | 14,189,000 | 14,080,000 | 4,782,000 |
| Dividends paid |  |  |  | 1,193,000 | 1,404,000 | 1,995,000 | 2,407,000 | 2,615,000 | 3,018,000 | 4,061,000 | 4,442,000 | 4,535,000 | 4,578,000 |
| Share buybacks | 1,796,000 | 414,000 | 1,320,000 |  |  |  | 1,210,000 | 987,000 | 6,279,000 | 4,430,000 | 231,000 | 419,000 | 1,573,000 |
| Assets |  |  |  | 673,925,000 | 716,782,000 | 853,903,000 | 1,054,260,000 | 1,257,634,000 | 1,435,926,000 | 1,948,384,000 | 2,075,666,000 | 2,103,090,000 | 2,106,367,000 |
| Liabilities |  |  |  | 614,469,000 | 633,166,000 | 759,097,000 | 932,601,000 | 1,104,696,000 | 1,279,197,000 | 1,789,968,000 | 1,906,393,000 | 1,928,325,000 | 1,914,553,000 |
| Stockholders' equity |  |  |  | 59,456,000 | 83,616,000 | 94,806,000 | 121,659,000 | 152,938,000 | 156,729,000 | 158,416,000 | 169,273,000 | 174,765,000 | 191,814,000 |
| Cash and cash equivalents |  |  |  | 7,318,000 | 7,437,000 | 11,201,000 | 24,918,000 | 69,802,000 | 61,434,000 | 21,811,000 | 24,545,000 | 31,559,000 | 62,962,000 |
| Free cash flow |  |  |  | 10,646,000 | 16,518,000 | 6,509,000 | -10,177,000 | -18,520,000 | 44,236,000 | 25,149,000 | -4,843,000 | 14,459,000 | 28,345,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2011 | 2012 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 21.46% | 14.73% | 14.30% | 23.38% | 42.71% | 28.98% | 15.41% | 10.98% | 9.38% | 13.68% |
| Return on equity |  |  |  | 8.63% | 4.91% | 5.25% | 8.94% | 13.87% | 9.20% | 6.75% | 5.94% | 5.59% | 7.73% |
| Return on assets |  |  |  | 0.76% | 0.57% | 0.58% | 1.03% | 1.69% | 1.00% | 0.55% | 0.48% | 0.46% | 0.70% |
| Liabilities / equity |  |  |  | 10.33 | 7.57 | 8.01 | 7.67 | 7.22 | 8.16 | 11.30 | 11.26 | 11.03 | 9.98 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001478454.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.40 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.42 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.26 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 24,094,000 | 2,635,000 | 0.34 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 24,541,000 | 2,164,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 24,942,000 | 1,898,000 | 0.24 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 25,822,000 | 1,738,000 | 0.22 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 26,760,000 | 2,709,000 | 0.34 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 26,687,000 | 3,433,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 26,069,000 | 3,239,000 | 0.41 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 27,150,000 | 3,237,000 | 0.41 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 27,834,000 | 3,630,000 | 0.46 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 27,358,000 | 4,729,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 26,222,000 | 3,984,000 | 0.51 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 26,611,000 | 3,715,000 | 0.47 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Risk Factors

Verbatim Item 1A Risk Factors from EBMT's latest 10-K: [/company/EBMT/risk-factors/](/company/EBMT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1478454/000143774926025842/ebmt20260630c_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction 

Eagle Bancorp Montana, Inc. is a bank holding company registered under the Bank Holding Company Act, is incorporated under the laws of Delaware and headquartered in Helena, Montana. Its wholly-owned subsidiary, Opportunity Bank of Montana (the "Bank"), is a Montana-state-chartered bank that is a member of the Federal Reserve System.

This discussion and analysis provides information that management believes is necessary to understand Eagle's financial condition, changes in financial condition, results of operations, and cash flows for the three and six months ended June 30, 2026, as compared to the same period of 2025. The following should be read in conjunction with the Company's Consolidated Financial Statements, and accompanying Notes thereto, for the year ended December 31, 2025, included in Eagle's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on March 9, 2026, and in conjunction with the Condensed Consolidated Financial Statements, and accompanying Notes thereto, included in Part I - Item 1. Financial Statements of this report. The results of operations for the three and six months ended June 30, 2026, are not necessarily indicative of the future results that may be attained for the entire year or other interim periods. 

Executive Summary

The Company’s primary business activity is the ownership of the Bank. The Bank focuses on consumer, commercial, and agricultural lending. It engages in typical banking activities: acquiring deposits from local markets and originating loans and investing in securities. Our earnings depend primarily on our level of net interest income, which is the difference between interest earned on our interest-earning assets, consisting primarily of loans and investment securities, and the interest paid on interest-bearing liabilities, consisting primarily of deposits, borrowed funds, and trust-preferred securities. Net interest income is a function of our interest rate spread, which is the difference between the average yield earned on our interest-earning assets and the average rate paid on our interest-bearing liabilities, as well as a function of the average balance of interest-earning assets compared to interest-bearing liabilities. Also contributing to our earnings is noninterest income, which consists primarily of service charges and fees on loan and deposit products and services, net gains and losses on sale of assets, and mortgage loan service fees. Net interest income and noninterest income are offset by provisions for credit losses, general administrative and other expenses, including salaries and employee benefits and occupancy and equipment costs, as well as by state and federal income tax expense.  

The Bank has focused on diversifying the loan portfolio over the past decade, adding commercial and agricultural loans to the strong mortgage lending proficiency. Loan originations represented by single-family residential mortgages enabled the Bank to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.). The Bank has grown the commercial loan portfolio in both real estate and non-real estate, and further added agricultural loans, which have a shorter term and slightly higher interest rate, through acquisitions. The purpose of diversification is to mitigate the Bank’s exposure to specific market segments, as well as to improve our ability to manage our interest rate spread. This has provided additional interest income and improved interest rate sensitivity. The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it now maintains a significant loan serviced portfolio which provides a steady source of fee income. Fee income is also supplemented with fees generated from deposit accounts. The Bank has a high percentage of non-maturity deposits, such as checking accounts and savings accounts, which allows management flexibility in managing its spread. Non-maturity deposits and certificates of deposits do not automatically reprice as interest rates rise. Gain on sale of loans also provides significant noninterest income in periods of high mortgage loan origination volumes. Such income will be, and has recently been, adversely affected in periods of lower mortgage activity.

Management continues to focus on improving the Bank’s earnings. Management believes the Bank needs to continue to concentrate on increasing net interest margin, other areas of fee income and control of operating expenses to achieve earnings growth going forward. Management’s strategy of growing the loan portfolio and deposit base is expected to help achieve these goals as follows: loans typically earn higher rates of return than investments; a larger deposit base should yield higher fee income; increasing the asset base will reduce the relative impact of fixed operating costs. The biggest challenge to this strategy is funding growth in an efficient manner. It may become more difficult to maintain deposit growth due to significant competition, the current conditions in the banking industry and possible reduced customer demand for deposits as customers may shift into other asset classes.

The level and movement of interest rates impacts the Bank’s earnings as well. The Federal Open Market Committee decreased the federal funds target rate to 3.75% during the year ended December 31, 2025. The rate remained at 3.75% during the six months ended June 30, 2026. 

Financial Condition

Comparisons of financial condition in this section are between June 30, 2026 and December 31, 2025.

Total assets were $2.13 billion at June 30, 2026, an increase of $19.48 million, or 0.9%, from $2.11 billion at December 31, 2025. Loans receivable, net increased by $39.06 million from December 31, 2025. Securities available-for-sale increased $3.98 million, or 1.4%, from December 31, 2025. Total liabilities were $1.93 billion at June 30, 2026 an increase of $13.89 million, or 0.7%, from $1.91 billion at December 31, 2025. The increase was largely due to an increase in FHLB advances. Total borrowings increased $14.14 million from December 31, 2025 and total deposits increased $8.61 million from December 31, 2025. Total shareholders’ equity increased $5.60 million, or 2.9%, from December 31, 2025.

- 23 -

Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Financial Condition – continued

Financial Condition Details

Investment Activities

The following table summarizes investment activities:

[[GREPCENT_TABLE]]
[["","","June 30,","","","December 31,"],["","","2026","","","2025"],["","","Fair Value","","","Percent of Total","","","Fair Value","","","Percent of Total"],["","","(Dollars in Thousands)"],["Securities available-for-sale:"],["U.S. government and agency obligations","","$","3,830","","","","1.34","%","","$","4,155","","","","1.48","%"],["U.S. treasury obligations","","","44,098","","","","15.44","","","","44,308","","","","15.73"],["Municipal obligations","","","125,665","","","","43.99","","","","118,324","","","","41.99"],["Corporate obligations","","","997","","","","0.35","","","","1,971","","","","0.70"],["Mortgage-backed securities","","","25,238","","","","8.83","","","","26,494","","","","9.41"],["Collateralized mortgage obligations","","","79,549","","","","27.85","","","","79,661","","","","28.28"],["Asset-backed securities","","","6,299","","","","2.20","","","","6,779","","","","2.41"],["Total securities available-for-sale","","$","285,676","","","","100.00","%","","$","281,692","","","","100.00","%"]]
[[/GREPCENT_TABLE]]

Securities available-for-sale were $285.68 million at June 30, 2026, an increase of $3.99 million, or 1.4%, from $281.69 million at December 31, 2025. The increase was primarily due to purchasing activity of $15.19 million, which was partially offset by maturities, principal payments and call activity of $10.20 million. 

Lending Activities 

The following table includes the composition of the Bank’s loan portfolio by loan category: 

[[GREPCENT_TABLE]]
[["","","June 30,","","","December 31,"],["","","2026","","","2025"],["","","Amount","","","Percent of Total","","","Amount","","","Percent of Total"],["","","(Dollars in Thousands)"],["Real estate loans:"],["Residential 1-4 family (1)","","$","143,748","","","","9.22","%","","$","148,515","","","","9.78","%"],["Residential 1-4 family construction","","","45,628","","","","2.93","","","","35,278","","","","2.32"],["Total residential 1-4 family","","","189,376","","","","12.15","","","","183,793","","","","12.10"],["Commercial real estate","","","684,381","","","","43.92","","","","635,970","","","","41.87"],["Commercial construction and development","","","98,851","","","","6.34","","","","120,289","","","","7.92"],["Farmland","","","157,275","","","","10.09","","","","162,580","","","","10.70"],["Total commercial real estate","","","940,507","","","","60.35","","","","918,839","","","","60.49"],["Total real estate loans","","","1,129,883","","","","72.50","","","","1,102,632","","","","72.59"],["Other loans:"],["Home equity","","","108,629","","","","6.97","","","","108,073","","","","7.11"],["Consumer","","","21,459","","","","1.38","","","","24,424","","","","1.61"],["Commercial","","","161,457","","","","10.36","","","","149,431","","","","9.84"],["Agricultural","","","136,916","","","","8.79","","","","134,459","","","","8.85"],["Total commercial loans","","","298,373","","","","19.15","","","","283,890","","","","18.69"],["Total other loans","","","428,461","","","","27.50","","","","416,387","","","","27.41"],["Total loans","","","1,558,344","","","","100.00","%","","","1,519,019","","","","100.00","%"],["Allowance for credit losses","","","(17,640",")","","","","","","","(17,370",")"],["Total loans, net","","$","1,540,704","","","","","","","$","1,501,649"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","(1)","Excludes loans held-for-sale."]]
[[/GREPCENT_TABLE]]

- 24 -

Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Financial Condition – continued

Lending Activities– continued

Total loans increased $39.32 million to $1.56 billion at June 30, 2026 from $1.52 billion at December 31, 2025. The increase was attributable to increases in total commercial real estate loans of $21.67 million, total commercial loans of $14.48 million, total residential loans of $5.59 million, and home equity loans of $550,000. The increases were partially offset by a decrease of $2.97 million in consumer loans. 

Total loan originations were $393.72 million for the six months ended June 30, 2026. Total residential 1-4 family originations were $187.24 million, which includes $147.29 million of loans held-for-sale originations. Total commercial originations were $114.70 million. Total commercial real estate originations were $69.29 million. Home equity loan originations totaled $17.52 million. Consumer loan originations totaled $4.97 million. Loans held-for-sale increased by $8.52 million to $15.97 million at June 30, 2026 from $7.45 million at December 31, 2025.

Generally, our collection procedures provide that when a loan is 15 or more days delinquent, the borrower is sent a past due notice. If the loan becomes 30 days delinquent, the borrower is sent a written delinquency notice requiring payment. If the delinquency continues, subsequent efforts are made to contact the delinquent borrower, including face to face meetings and counseling to resolve the delinquency. All collection actions are undertaken with the objective of compliance with the relevant state and federal banking laws, including

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1478454/000143774926007330/ebmt20251231_10k.htm
Complete FY 2025 MD&A: /company/EBMT/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-09
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion and analysis of the financial condition and results of operations of Eagle is intended to help investors understand our company and our operations. The financial review is provided as a supplement to and should be read in conjunction with the Consolidated Financial Statements and the related Notes included elsewhere in this report.

Introduction 

Eagle Bancorp Montana, Inc. is a bank holding company registered under the Bank Holding Company Act, is incorporated under the laws of Delaware and headquartered in Helena, Montana. Through its wholly-owned subsidiary, Opportunity Bank of Montana, a Montana state-chartered bank that is a member of the Federal Reserve System, the Company provides commercial and consumer banking services.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") describes Eagle and its subsidiaries' results of operations for the year ended December 31, 2025 as compared to the year ended December 31, 2024, and also analyzes our financial condition as of December 31, 2025 as compared to December 31, 2024. Like most banking institutions, our principal business consists of attracting deposits from the general public and the business community and making loans secured by various types of collateral, including real estate and other consumer assets. We are significantly affected by prevailing economic conditions, particularly interest rates, as well as government policies concerning, among other things, monetary and fiscal affairs, housing and financial institutions and regulations regarding lending and other operations, privacy and consumer disclosure. Attracting and maintaining deposits is influenced by a number of factors, including interest rates paid on competing investments offered by other financial and nonfinancial institutions, account maturities, fee structures and levels of personal income and savings. Lending activities are affected by the demand for funds and thus are influenced by interest rates, the number and quality of lenders and regional economic conditions. Sources of funds for lending activities include deposits, borrowings, repayments on loans, cash flows from maturities of investment securities and income provided from operations.

Our earnings depend primarily on our level of net interest income, which is the difference between interest earned on our interest-earning assets, consisting primarily of loans and investment securities, and the interest paid on interest-bearing liabilities, consisting primarily of deposits, borrowed funds, and trust-preferred securities. Net interest income is a function of our interest rate spread, which is the difference between the average yield earned on our interest-earning assets and the average rate paid on our interest-bearing liabilities, as well as a function of the average balance of interest-earning assets compared to interest-bearing liabilities. Also contributing to our earnings is noninterest income, which consists primarily of service charges and fees on loan and deposit products and services, net gains and losses on sale of assets, and mortgage loan service fees. Net interest income and noninterest income are offset by provisions for credit losses, general administrative and other expenses, including salaries and employee benefits and occupancy and equipment costs, as well as by state and federal income tax expense.

The Bank has a strong mortgage lending focus, with a large portion of its loan originations represented by single-family residential mortgages, which has enabled it to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.). The Bank has also focused on adding commercial loans to our portfolio, both real estate and non-real estate. We have made significant progress in this initiative over the past decade. As of December 31, 2025, commercial real estate loans represented 60.5% of the total loan portfolio, including farmland loans representing 10.7% of the total loan portfolio. Commercial business loans represented 18.7% of the total loan portfolio, including agricultural loans representing 8.9% of the total loan portfolio. The purpose of this diversification is to mitigate our dependence on the residential mortgage market, as well as to improve our ability to manage our interest rate spread. Recent acquisitions have added to our agricultural loans, which generally have shorter maturities and nominally higher interest rates. This has provided additional interest income and improved interest rate sensitivity. The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it maintains a significant loan serviced portfolio, which provides a steady source of fee income. As of December 31, 2025, we had mortgage servicing rights, net of $15.04 million compared to $15.38 million as of December 31, 2024. Gain on sale of loans also provides significant noninterest income in periods of high mortgage loan origination volumes. Such income will be, and has recently been, adversely affected in periods of lower mortgage activity.

Fee income is also supplemented with fees generated from deposit accounts. The Bank has a high percentage of non-maturity deposits, such as checking accounts and savings accounts, which allows management flexibility in managing its spread. Non-maturity deposits and certificates of deposit do not automatically reprice as interest rates rise.

Management continues to focus on improving the Bank's earnings. Management believes the Bank needs to continue to concentrate on increasing net interest margin, other areas of fee income and control operating expenses to achieve earnings growth going forward. Management’s strategy of growing the loan portfolio and deposit base is expected to help achieve these goals as follows: loans typically earn higher rates of return than investments; a larger deposit base should yield higher fee income; increasing the asset base will reduce the relative impact of fixed operating costs. The biggest challenge to the strategy is funding the growth of the statement of financial condition in an efficient manner. Though deposit growth has been steady, it may become more difficult to maintain due to significant competition and possible reduced customer demand for deposits as customers may shift into other asset classes.

Other than short term residential construction loans, we do not offer “interest only” mortgage loans on residential 1-4 family properties (where the borrower pays interest but no principal for an initial period, after which the loan converts to a fully amortizing loan). We also do not offer loans that provide for negative amortization of principal, such as “Option ARM” loans, where the borrower can pay less than the interest owed on their loan, resulting in an increased principal balance during the life of the loan. We do not offer “subprime loans” (loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios) or Alt-A loans (traditionally defined as loans having less than full documentation).

The level and movement of interest rates impacts the Bank’s earnings as well. The Federal Open Market Committee decreased the federal funds target rate to 4.50% during the year ended December 31, 2024. The rate decreased to 3.75% during the year ended December 31, 2025. 

21

Table of Contents

Critical Accounting Policies and Estimates 

The accounting and financial reporting policies of Eagle are in accordance with generally accepted accounting principles ("GAAP") and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Eagle has identified certain of its accounting policies as “critical accounting policies,” consisting of those related to the allowance for credit losses and goodwill. In determining which accounting policies are critical in nature, Eagle has identified the policies that require significant judgment or involve complex estimates. Eagle’s financial results could differ significantly if different judgments or estimates are used in the application of these policies. The critical accounting policies and related estimates are summarized below.

Allowance for Credit Losses  

The allowance for credit losses ("ACL") on loans is a valuation account that is management’s estimate of the amount considered necessary to absorb expected losses in the loan portfolio at the balance sheet date. The allowance is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans and is established through the provision for credit losses. Increases in the allowance are charged against income, and decreases in the allowance are recorded through net income as a reversal of the provision for credit losses.

Quarterly, an assessment is performed of the risks expected in the loan portfolio. A detailed review is conducted for significant loans identified as having weaknesses that do not share common risk characteristics with other loans. The methodology for determining the adequacy of the allowance for credit losses is considered a critical accounting policy by management due to its complexity and the high degree of judgment involved. The primary factors and assumptions considered include loan volume, credit ratings, delinquency status, prepayment speeds, weighted average lives, and other relevant available information from internal and external sources related to past events and historical loss experience. Management uses qualitative judgment to adjust loss rates to reflect management’s assessment of current economic conditions, along with reasonable and supportable forecasts. The allowance is based on information known at the time of the review. Changes in factors underlying the assessment for subsequent evaluations of the loan portfolio could have a material impact on the amount of the allowance that is necessary to increase the amount of provision to be charged against earnings. See Note 3 to the Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data” for further information.

Goodwill

The excess of consideration paid over fair value of net assets acquired for acquisitions is recorded as goodwill. Goodwill is not amortized but is tested at least annually for impairment or more frequently if events occur or circumstances change that indicate impairment may exist. A goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value. An impairment charge is recorded for the amount by which the carrying amount exceeds the reporting unit's fair value. A weighted average of both the market and income approaches is used in valuing the reporting unit’s fair value. Weightings are assigned to the approaches regarding fair value and the sensitivity of other weighting scenarios is considered. The market approach incorporates comparable public company information, valuation multiples and consideration of a market control premium along with data related to comparable observed purchase transactions in the financial services industry. The income approach consists of discounting projected future cash flows, which are derived from internal forecasts and economic expectations for the reporting unit. The significant inputs and assumptions for the income approach include a discount rate and projected earnings of the Company in future years for which there is inherent uncertainty. The sensitivity of a range of reasonable discount rates based on the current econ

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/EBMT/mda/fy2025/
All MD&A years: /company/EBMT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/EBMT/mda/fy2024/): filed 2025-03-14; accession 0001437749-25-007739 (https://www.sec.gov/Archives/edgar/data/1478454/000143774925007739/ebmt20241231c_10k.htm)
- [FY 2023 MD&A](/company/EBMT/mda/fy2023/): filed 2024-03-06; accession 0001437749-24-006812 (https://www.sec.gov/Archives/edgar/data/1478454/000143774924006812/ebmt20231231_10k.htm)
- [FY 2022 MD&A](/company/EBMT/mda/fy2022/): filed 2023-03-08; accession 0001437749-23-005778 (https://www.sec.gov/Archives/edgar/data/1478454/000143774923005778/ebmt20221231_10k.htm)
- [FY 2021 MD&A](/company/EBMT/mda/fy2021/): filed 2022-03-09; accession 0001437749-22-005655 (https://www.sec.gov/Archives/edgar/data/1478454/000143774922005655/ebmt20211231_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6022 State Commercial Banks) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/EBMT.md · JSON record: /company/EBMT.json · verified financials: /company/EBMT/financials.json / /company/EBMT/financials.csv · machine TOC for the whole site: /llms.txt