Business
Eagle Bancorp Montana Earns $2.0 Million, or $0.26 per Diluted Share, in the Second Quarter of 2023; Increases Quarterly Cash Dividend to $0.14 Per Share
HELENA, Mont., July 25, 2023 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank
About this update from Eagle Bancorp Montana, Inc.
[{"type":"text","content":"HELENA, Mont., July 25, 2023 (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 $2.0 million, or $0.26 per diluted share, in the second quarter of 2023, compared to $3.2 million, or $0.42 per diluted share, in the preceding quarter, and $1.8 million, or $0.24 per diluted share, in the second quarter of 2022. In the first six months of 2023, net income was $5.3 million, or $0.67 per diluted share, compared to $4.0 million, or $0.57 per diluted share, in the first six months of 2022. Eagle’s board of directors increased its quarterly cash dividend to $0.14 per share on July 20, 2023. The dividend will be payable September 1, 2023 to shareholders of record August 11, 2023. The current dividend represents an annualized yield of 4.34% based on recent market prices. “Eagle’s second quarter operating results were fueled by improved revenue generation compared to the prior quarter and loan growth,” said Laura F. Clark, President and CEO. “Total loans increased $170.5 million, or 13.6%, over the last 12 months, while growing $44.1 million, or 3.2%, during the second quarter. We were surprised by loan demand during the second quarter, and remain positive about the opportunities in our markets, as loan pipelines and overall business activity remain solid. Additionally, our acquisition of First Community Bancorp, Inc., and its subsidiary, 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 $38.6 million and added approximately $370 million in assets, $321 million in deposits and $191 million in loans. While our outlook for the second half of 2023 remains uncertain as the full effect of the higher interest rate environment continues to impact funding costs and our net interest margin, we are encouraged by customer loan demand and are well positioned for stable growth throughout the remainder of the year.” On January 1, 2023, Eagle implemented the Current Expected Credit Losses (“CECL”) standard. The adoption resulted in a $700,000 increase to the allowance for credit losses, a $1.5 million increase to the allowance for unfunded loan commitments, and a net-of-tax cumulative effect adjustmen...