EXHIBIT 99.1

Eagle Bancorp Montana Earns $1.7 Million, or $0.22 per Diluted Share, in the Second Quarter of 2024; Increases Quarterly Cash Dividend to $0.1425 Per Share

HELENA, Mont., July 23, 2024 (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 $1.7 million, or $0.22 per diluted share, in the second quarter of 2024, compared to $1.9 million, or $0.24 per diluted share, in the preceding quarter, and $2.0 million, or $0.26 per diluted share, in the second quarter of 2023. In the first six months of 2024, net income was $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.

Eagle’s board of directors increased its quarterly cash dividend to $0.1425 per share on July 22, 2024. The dividend will be payable September 6, 2024, to shareholders of record August 16, 2024. The current dividend represents an annualized yield of 4.27% based on recent market prices.

“We produced solid second quarter results, fueled by disciplined loan growth, pristine credit quality metrics and net interest margin expansion, compared to the previous quarter,” said Laura F. Clark, President and CEO. “We continue to attract high quality loans, achieving loan growth of 6.8% year-over-year, even in the current rate environment. Additionally, the increase in loan yields more than offset the increase in funding costs, contributing to net interest margin expansion for the second consecutive quarter. We are one of three publicly traded financial institutions based in Montana, and with our strong deposit franchise and healthy capital levels we are well positioned to continue to grow in our markets.”

Second Quarter 2024 Highlights (at or for the three-month period ended June 30, 2024, except where noted):

• Net income was $1.7 million, or $0.22 per diluted share, in the second quarter of 2024, compared to $1.9 million, or $0.24 per diluted share, in the preceding quarter, and $2.0 million, or $0.26 per diluted share, in the second quarter a year ago.
• Net interest margin (“NIM”) was 3.41% in the second quarter of 2024, an eight basis point improvement compared to 3.33% in the preceding quarter, and a six basis point contraction compared to 3.47% in the second quarter a year ago.
• Revenues (net interest income before the provision for credit losses, plus noninterest income) were $19.9 million in the second quarter of 2024, compared to $19.2 million in the preceding quarter and $21.5 million in the second quarter a year ago.
• The accretion of the loan purchase discount into loan interest income from acquisitions was $304,000 in the second quarter of 2024, compared to accretion on purchased loans from acquisitions of $118,000 in the preceding quarter.
• Total loans increased 6.8% to $1.52 billion, at June 30, 2024, compared to $1.42 billion a year earlier, and increased 1.3% compared to $1.50 billion at March 31, 2024.
• Total deposits increased 2.6% to $1.62 billion at June 30, 2024, compared to $1.58 billion a year earlier, and decreased 1.0% compared to $1.64 billion at March 31, 2024.
• The allowance for credit losses represented 1.11% of portfolio loans and 330.8% of nonperforming loans at June 30, 2024, compared to 1.09% of portfolio loans and 156.7% of nonperforming loans at June 30, 2023.
• The Company’s available borrowing capacity was approximately $374.5 million at June 30, 2024.

• The Company paid a quarterly cash dividend in the second quarter of $0.14 per share on June 7, 2024, to shareholders of record May 17, 2024.

Balance Sheet Results

Eagle’s total assets increased 3.7% to $2.10 billion at June 30, 2024, compared to $2.02 billion a year ago, and increased 1.1% compared to $2.08 billion three months earlier. The investment securities portfolio totaled $306.9 million at June 30, 2024, compared to $326.0 million a year ago, and $311.2 million at March 31, 2024.

Eagle originated $60.6 million in new residential mortgages during the quarter and sold $53.2 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.01%. This production compares to residential mortgage originations of $50.4 million in the preceding quarter with sales of $43.6 million and an average gross margin on sale of mortgage loans of approximately 3.25%. Mortgage volumes remain low as rates have continued to be elevated relative to rates on existing mortgages.

Total loans increased $96.0 million, or 6.8%, compared to a year ago, and $20.4 million, or 1.3%, from three months earlier. Commercial real estate loans increased 8.6% to $627.3 million at June 30, 2024, compared to $577.7 million a year earlier. Commercial real estate loans were comprised of 67.1% non-owner occupied and 32.9% owner occupied at June 30, 2024. Agricultural and farmland loans increased 6.4% to $279.5 million at June 30, 2024, compared to $262.8 million a year earlier, as the Company continues to build expertise in agricultural lending. Residential mortgage loans increased 17.7% to $157.1 million, compared to $133.4 million a year earlier. Commercial loans increased 11.3% to $143.6 million, compared to $129.1 million a year ago. Commercial construction and development loans decreased 13.3% to $137.4 million, compared to $158.5 million a year ago. Home equity loans increased 16.0% to $93.2 million, residential construction loans increased 1.4% to $50.2 million, and consumer loans decreased 3.1% to $29.1 million, compared to a year ago.

“Our deposit mix continues to shift towards higher yielding deposits due to the higher interest rate environment. However, the increase in our overall cost of deposits has slowed, and we anticipate deposit rates will continue to stabilize over the next several quarters,” said Miranda Spaulding, CFO.

Total deposits increased 2.6% to $1.62 billion at June 30, 2024, compared to $1.58 billion at June 30, 2023, and decreased 1.0% compared to $1.64 billion at March 31, 2024. Noninterest-bearing checking accounts represented 24.7%, interest-bearing checking accounts represented 13.0%, savings accounts represented 13.6%, money market accounts comprised 22.2% and time certificates of deposit made up 26.5% of the total deposit portfolio at June 30, 2024. Time certificates of deposit include $26.2 million in brokered certificates at June 30, 2024, compared to $15.1 million at June 30, 2023, and $50.0 million at March 31, 2024. The average cost of total deposits was 1.70% in the second quarter of 2024, compared to 1.62% in the preceding quarter and 1.05% in the second quarter of 2023. The estimated amount of uninsured deposits at both June 30, 2024 and March 31, 2024, was approximately $284.0 million, or 17% of total deposits.

Shareholders’ equity was $170.2 million at June 30, 2024, compared to $162.7 million a year earlier and $168.9 million three months earlier. Book value per share was $21.23 at June 30, 2024, compared to $20.37 a year earlier and $21.07 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 $16.25 at June 30, 2024, compared to $15.19 a year earlier and $16.05 three months earlier.  

Operating Results

“Our NIM expanded eight basis points during the second quarter compared to the preceding quarter, boosted by growth and higher yields on interest earning assets in addition to a slowdown in cost of funds expansion,” said Clark. “We anticipate continued improvement in our cost of funds as we continue through this rate cycle.”

Eagle’s NIM was 3.41% in the second quarter of 2024, compared to 3.33% in the preceding quarter, and a six basis-point contraction compared to 3.47% in the second quarter a year ago. The interest accretion on acquired loans totaled $304,000 and resulted in a seven basis-point increase in the NIM during the second quarter of 2024, compared to $118,000 and a three basis-point increase in the NIM during the preceding quarter. Funding costs for the second quarter of 2024 were 2.78%, compared to 2.67% in the first quarter of 2024 and 2.06% in the second quarter of 2023. Average yields on interest earning assets for the second quarter of 2024 increased to 5.64%, compared to 5.47% in the first quarter of 2024 and 5.06% in the second quarter a year ago. For the first six months of 2024, the NIM was 3.37% compared to 3.66% for the first six months of 2023.

Net interest income, before the provision for credit losses, increased 2.7% to $15.6 million in the second quarter of 2024, compared to $15.2 million in the first quarter of 2024, and increased 2.4% compared to $15.3 million in the second quarter of 2023. Year-to-date, net interest income decreased 2.7% to $30.8 million, compared to $31.7 million in the same period one year earlier.

Revenues for the second quarter of 2024 increased 3.8% to $19.9 million, compared to $19.2 million in the preceding quarter and decreased 7.3% compared to $21.5 million in the second quarter a year ago. In the first six months of 2024, revenues were $39.1 million, compared to $42.6 million in the first six months of 2023. The decrease compared to the first six months a year ago was largely due to lower volumes in mortgage banking activity.

Total noninterest income increased 8.0% to $4.3 million in the second quarter of 2024, compared to $4.0 million in the preceding quarter, and decreased 31.2% compared to $6.2 million in the second quarter a year ago. Net mortgage banking income, the largest component of noninterest income, totaled $2.4 million in the second quarter of 2024, compared to $2.2 million in the preceding quarter and $3.9 million in the second quarter a year ago. This decrease compared to the second quarter a year ago was largely driven by a decline in net gain on sale of mortgage loans. This was impacted by mortgage margin compression and lower loan volumes. In the first six months of 2024, noninterest income decreased 24.4% to $8.2 million, compared to $10.9 million in the first six months of 2023. Net mortgage banking income decreased 33.6% to $4.6 million in the first six months of 2024, compared to $6.9 million in the first six months of 2023. These decreases were driven by a decline in net gain on sale of mortgage loans.

Eagle’s second quarter noninterest expense increased 1.6% to $17.3 million, compared to $17.0 million in the preceding quarter and decreased 7.9% compared to $18.8 million in the second quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the year ago quarter. In the first six months of 2024, noninterest expense decreased 2.8% to $34.3 million, compared to $35.3 million in the first six months of 2023.

For the second quarter of 2024, the Company recorded an income tax expense of $444,000. This compared to an income tax expense of $370,000 in the preceding quarter and income tax expense of $344,000 in the second quarter of 2023. The effective tax rate for the second quarter of 2024 was 20.3%, compared to 14.6% for the second quarter of 2023. The year-to-date effective tax rate was 18.3% for 2024 compared to 20.9% for the same period in 2023.

Credit Quality

During the second quarter of 2024, Eagle recorded a provision for credit losses of $412,000. This compared to a $135,000 recapture to its provision for credit losses in the preceding quarter and a $319,000 provision for credit losses in the second quarter a year ago. The allowance for credit losses represented 330.8% of nonperforming loans at June 30, 2024, compared to 227.6% three months earlier and 156.7% a year earlier. Nonperforming loans were $5.1 million at June 30, 2024, $7.2 million at March 31, 2024, and $9.9 million a year earlier.

Net loan charge-offs totaled $2,000 in the second quarter of 2024, compared to net loan recoveries of $65,000 in the preceding quarter and net loan recoveries of $151,000 in the second quarter a year ago. The allowance for credit losses was $16.8 million, or 1.11% of total loans, at June 30, 2024, compared to $16.4 million, or 1.10% of total loans, at March 31, 2024, and $15.6 million, or 1.09% of total loans, a year ago.

Capital Management

The 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 6.33% at June 30, 2024, from 6.12% a year ago and 6.32% three months earlier. As of June 30, 2024, 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 9.92% as of June 30, 2024.

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 29 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 and expectations; statements regarding our business plans, prospects, mergers, 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, either nationally or in our market areas, that are worse than expected including the ability of the U.S. Congress to increase the U.S. statutory debt limit, as needed, as well as the impact of the 2024 U.S. presidential election; the emergence or continuation of widespread health emergencies or pandemics including the magnitude and duration 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 continuing adverse developments affecting 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 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 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; 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; our ability to appropriately address social, environmental, and sustainability concerns 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, the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common equity to tangible assets. 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.

Contacts:  Laura F. Clark, President and CEO
(406) 457-4007
Miranda J. Spaulding, SVP and CFO
(406) 441-5010