Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), the parent company of Opportunity Bank of Montana, announced its financial results for the second quarter of 2024 on July 23. The company reported a net income of $1.7 million, or $0.22 per diluted share, marking a slight decrease from $1.9 million, or $0.24 per diluted share, in the previous quarter, and a decline from $2.0 million, or $0.26 per diluted share, in the same quarter last year.
For the first half of 2024, Eagle Bancorp’s net income totaled $3.6 million, or $0.46 per diluted share, compared to $5.3 million, or $0.67 per diluted share, in the first six months of 2023.
In a positive development, the company’s board of directors declared a quarterly cash dividend of $0.1425 per share. The dividend, which will be payable on September 6, 2024, to shareholders of record as of August 16, 2024, offers an annualized yield of 4.27% based on recent market prices.
Laura F. Clark, President and CEO of Eagle Bancorp, highlighted the company’s solid performance in the second quarter. “We achieved significant results this quarter, driven by disciplined loan growth, strong credit quality, and net interest margin expansion,” Clark said. “Despite the current rate environment, we have successfully attracted high-quality loans, achieving a 6.8% increase in loan growth year-over-year. The rise in loan yields has more than offset increased funding costs, resulting in net interest margin growth for the second consecutive quarter.”
Second Quarter 2024 Highlights
– Net income was $1.7 million, or $0.22 per diluted share, down from $1.9 million, or $0.24 per diluted share, in the previous quarter and $2.0 million, or $0.26 per diluted share, in Q2 2023.
– Net interest margin (NIM) improved to 3.41%, up eight basis points from the previous quarter but down six basis points from the same quarter last year.
– Revenues, including net interest income before the provision for credit losses and noninterest income, reached $19.9 million, compared to $19.2 million in the previous quarter and $21.5 million in Q2 2023.
– Accretion of the loan purchase discount into loan interest income from acquisitions was $304,000, up from $118,000 in the previous quarter.
– Total loans increased 6.8% to $1.52 billion as of June 30, 2024, from $1.42 billion a year earlier, and rose 1.3% from $1.50 billion at March 31, 2024.
– Total deposits grew 2.6% to $1.62 billion at June 30, 2024, from $1.58 billion a year earlier, but decreased 1.0% from $1.64 billion at March 31, 2024.
– The allowance for credit losses was 1.11% of portfolio loans and 330.8% of nonperforming loans, up from 1.09% and 156.7%, respectively, a year ago.
– The company’s available borrowing capacity stood at approximately $374.5 million at the end of June.
Eagle Bancorp Montana continues to position itself for growth with a strong deposit base and healthy capital levels, as it remains one of the three publicly traded financial institutions based in Montana.
By: Montana Newsroom staff
