ebmt20260630c

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____.

Commission file number 1-34682

Eagle Bancorp Montana, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-1449820
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1400 Prospect Avenue, Helena, MT 59601

(Address of principal executive offices) (Zip code)

(406) 442-3080

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock par value $0.01 per share	EBMT	Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

Common stock, par value $0.01 per share

7,965,431 shares outstanding

As of July 31, 2026

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Statements of Financial Condition as of June 30, 2026 and December 31, 2025	1

	Condensed Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025	2

	Condensed Consolidated Statements of Comprehensive Income for t he three and six months ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2026 and 2025	4

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025	5

	Notes to Condensed Consolidated Financial Statements (Unaudited)	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	35

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37

Signatures		38

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

Cautionary Note Regarding Forward-Looking Statements

This report includes “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. These forward-looking statements include, but are not limited to:

●	statements of our goals, intentions and expectations;

●	statements regarding our business plans, prospects, 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 the management of Eagle Bancorp Montana, Inc. (“Eagle” or the “Company”) and Opportunity Bank of Montana (“OBMT” or the “Bank”), Eagle’s wholly-owned subsidiary, 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.

The following factors, among others, could cause the Company’s actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

●

changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and liquidity requirements;

●

local, regional, national and international economic conditions or macroeconomic instability (including any economic slowdown or recession, inflation, interest rate changes, credit loss trends, unemployment, changes in housing or securities markets, or other factors) and the impact of the same on Eagle and its customers;

	●	volatility, disruption, or uncertainty in national and international financial markets, including as a result of geopolitical developments, including the war in the Middle East;
	●	the effects of any U.S. federal government shutdown, closures or significant staff reductions in agencies regulating or otherwise impacting Eagle's business;
	●	the direct or indirect impact of any new regulatory, policy, or enforcement developments resulting from the policies or actions of the current U.S. presidential administration, including the implementation of tariffs and other protectionist trade policies, including any reciprocal tariffs by foreign countries, and any uncertainties related thereto;
	●	competition among banks, financial holding companies and other traditional and non-traditional financial service providers;

●

risks related to the concentration of our business in Montana, including risks associated with changes in the prices, values and sales volume of residential and commercial real estate in Montana;

●

inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments or reduces loan demand;

	●	our ability to attract deposits and other sources of funding or liquidity;
	●	possible changes in governmental monetary and fiscal policies;
	●	volatility in Eagle's stock price due to investor sentiment and perception of the banking industry;
	●	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. or global 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, or unexpected outflows of deposits which may require us to sell investment securities at a loss;
	●	our ability to assess and monitor the effect of evolving uses of artificial intelligence on our business and operations;
	●	our ability to navigate differing environmental, social, governmental, and sustainability concerns among governmental administrations, our stakeholders, and other activists that may arise from our business activities;

●

changes or volatility in the securities markets that lead to impairment in the value of our investment securities and goodwill;

●

our ability to implement our growth strategy, including identifying and consummating suitable acquisitions, raising additional capital to finance such transactions, entering new markets, possible failures in realizing the anticipated benefits from such acquisitions and an inability of our personnel, systems and infrastructure to keep pace with such growth;

	●	limitations on Eagle's ability to receive dividends from its subsidiaries;
	●	unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto;
	●	the effect of acquisitions we may make, if any, including, without limitation, the failure to achieve expected revenue growth and/or expense savings from such acquisitions;

●

potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;

	●	our ability to enter new markets successfully and capitalize on growth opportunities;
	●	the need to retain capital for strategic or regulatory reasons;
	●	changes in consumer spending, borrowing and savings habits;
	●	our ability to continue to increase and manage our commercial and residential real estate, multi-family and commercial business loans;

	●	our ability to implement new technologies and maintain secure and reliable technology systems;
	●	our ability to develop and maintain secure and reliable information technology systems, effectively defend ourselves against cyberattacks, or recover from breaches to our cybersecurity infrastructure;

●

the failure of assumptions underlying the establishment of allowance for possible loan losses and other estimates;

●

changes in the financial performance and/or condition of our borrowers and their ability to repay their loans when due; and

●

the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. For a further list and description of various risks, relevant factors and uncertainties that could cause future results or events to differ materially from those expressed or implied in our forward-looking statements, see the Part II, Item 1A, “Risk Factors” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections contained elsewhere in this report, as well as our Annual Report on Form 10-K for the year ended December 31, 2025, any subsequent Reports on Form 10-Q and Form 8-K, and other filings with the SEC. We do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur, or of which we hereafter become aware.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in Thousands, Except for Share Data)

	June 30,			December 31,
	2026			2025
		(Unaudited)
ASSETS:
Cash and due from banks	$	26,127		$	24,110
Interest-bearing deposits in banks		2,833			38,852
Total cash and cash equivalents		28,960			62,962

Securities available-for-sale, at fair value (amortized cost of $303,767 at June 30, 2026 and $299,162 at December 31, 2025)		285,676			281,692
Federal Home Loan Bank ("FHLB") stock		5,001			2,650
Federal Reserve Bank ("FRB") stock		4,131			4,131
Mortgage loans held-for-sale, at fair value		15,972			7,452
Loans receivable, net of allowance for credit losses of $17,640 at June 30, 2026 and $17,370 at December 31, 2025		1,540,704			1,501,649
Accrued interest and dividends receivable		14,242			14,448
Mortgage servicing rights, net		14,885			15,043
Premises and equipment, net		99,947			101,438
Cash surrender value of life insurance, net		55,460			54,708
Goodwill		34,740			34,740
Core deposit intangible, net		2,798			3,314
Deferred tax asset, net		8,997			8,333
Other assets		14,334			13,807
Total assets	$	2,125,847		$	2,106,367

LIABILITIES:
Deposit accounts:
Noninterest-bearing	$	448,260		$	452,183
Interest-bearing		1,341,944			1,329,416
Total deposits		1,790,204			1,781,599

Accrued expenses and other liabilities		41,628			50,482
Federal funds purchased		-			105
FHLB advances and other borrowings		52,102			37,917
Other long-term debt:
Principal amount		45,155			45,155
Unamortized debt issuance costs		(647	)		(705	)
Total other long-term debt, net		44,508			44,450

Total liabilities		1,928,442			1,914,553


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 per share; 20,000,000 shares authorized; 8,507,429 shares issued at June 30, 2026 and December 31, 2025; 7,965,431 shares outstanding at June 30, 2026 and 7,957,769 shares outstanding at December 31, 2025)		85			85
Additional paid-in capital		108,271			108,086
Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")		(3,151	)		(3,437	)
Treasury stock, at cost (541,998 shares at June 30, 2026 and 549,660 shares at December 31, 2025)		(11,374	)		(11,567	)
Retained earnings		116,910			111,521
Accumulated other comprehensive loss, net of tax		(13,336	)		(12,874	)
Total shareholders' equity		197,405			191,814

Total liabilities and shareholders' equity	$	2,125,847		$	2,106,367

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands, Except for Per Share Data)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans	$	24,088	$	24,442	$	47,658	$	47,762
Securities available-for-sale		2,297		2,397		4,512		4,848
FHLB and FRB dividends		112		236		250		496
Other interest income		114		75		413		113
Total interest and dividend income		26,611		27,150		52,833		53,219

INTEREST EXPENSE:
Deposits		6,633		6,877		13,294		13,748
FHLB advances and other borrowings		393		1,459		805		3,085
Other long-term debt		447		669		893		1,339
Total interest expense		7,473		9,005		14,992		18,172

NET INTEREST INCOME		19,138		18,145		37,841		35,047

Provision for credit losses		343		1,038		622		1,080

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		18,795		17,107		37,219		33,967

NONINTEREST INCOME:
Service charges on deposit accounts		419		393		827		782
Mortgage banking, net		2,920		2,926		5,354		5,051
Interchange and ATM fees		711		670		1,339		1,263
Appreciation in cash surrender value of life insurance		407		393		769		743
Other noninterest income		560		425		1,609		984
Total noninterest income		5,017		4,807		9,898		8,823

NONINTEREST EXPENSE:
Salaries and employee benefits		11,712		10,645		22,526		20,309
Occupancy and equipment expense		2,220		2,230		4,780		4,532
Data processing		1,332		1,305		2,587		2,635
Software subscriptions		610		715		1,181		1,373
Advertising		328		280		629		512
Amortization		249		298		520		618
Loan costs		388		354		753		726
Federal Deposit Insurance Corporation ("FDIC") insurance premiums		236		257		471		488
Professional and examination fees		420		391		802		911
Other noninterest expense		1,497		1,451		2,954		2,828
Total noninterest expense		18,992		17,926		37,203		34,932

INCOME BEFORE PROVISION FOR INCOME TAXES		4,820		3,988		9,914		7,858

Provision for income taxes		1,105		751		2,215		1,382

NET INCOME	$	3,715	$	3,237	$	7,699	$	6,476

BASIC EARNINGS PER COMMON SHARE	$	0.47	$	0.42	$	0.98	$	0.83

DILUTED EARNINGS PER COMMON SHARE	$	0.47	$	0.41	$	0.98	$	0.83

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

NET INCOME	$	3,715		$	3,237		$	7,699		$	6,476

OTHER ITEMS OF COMPREHENSIVE INCOME:
Change in fair value of investment securities available-for-sale		2,101			1,475			(621	)		3,115
Income tax (provision) benefit related to securities available-for-sale		(557	)		(388	)		159			(827	)
Total other comprehensive income (loss), net of tax		1,544			1,087			(462	)		2,288

COMPREHENSIVE INCOME	$	5,259		$	4,324		$	7,237		$	8,764

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

For the three and six months ended June 30, 2026 and 2025

(Dollars in Thousands, Except for Per Share Data)

(Unaudited)

																	Accumulated
					Additional			Unallocated									Other
	Preferred		Common		Paid-In			ESOP			Treasury			Retained			Comprehensive
	Stock		Stock		Capital			Shares			Stock			Earnings			(Loss) Income			Total

Balance at April 1, 2026	$	-	$	85	$	108,072		$	(3,294	)	$	(11,374	)	$	114,350		$	(14,880	)	$	192,959
Net income		-		-		-			-			-			3,715			-			3,715
Other comprehensive income, net of tax		-		-		-			-			-			-			1,544			1,544
Dividends paid ($0.1450 per share)		-		-		-			-			-			(1,155	)		-			(1,155	)
Stock compensation expense		-		-		207			-			-			-			-			207
ESOP shares allocated (5,997 shares)		-		-		(8	)		143			-			-			-			135
Balance at June 30, 2026	$	-	$	85	$	108,271		$	(3,151	)	$	(11,374	)	$	116,910		$	(13,336	)	$	197,405

Balance at April 1, 2025	$	-	$	85	$	108,451		$	(3,867	)	$	(11,517	)	$	103,366		$	(18,945	)	$	177,573
Net income		-		-		-			-			-			3,237			-			3,237
Other comprehensive income, net of tax		-		-		-			-			-			-			1,087			1,087
Dividends paid ($0.1425 per share)		-		-		-			-			-			(1,133	)		-			(1,133	)
Stock compensation expense		-		-		182			-			-			-			-			182
ESOP shares allocated (5,997 shares)		-		-		(43	)		143			-			-			-			100
Treasury stock purchased (25,000 shares at $16.34 average cost per share)		-		-		-			-			(408	)		-			-			(408	)
Balance at June 30, 2025	$	-	$	85	$	108,590		$	(3,724	)	$	(11,925	)	$	105,470		$	(17,858	)	$	180,638

Balance at January 1, 2026	$	-	$	85	$	108,086		$	(3,437	)	$	(11,567	)	$	111,521		$	(12,874	)	$	191,814
Net income		-		-		-			-			-			7,699			-			7,699
Other comprehensive loss, net of tax		-		-		-			-			-			-			(462	)		(462	)
Dividends paid ($0.2900 per share)		-		-		-			-			-			(2,310	)		-			(2,310	)
Stock compensation expense		-		-		402			-			-			-			-			402
Treasury stock reissued for stock incentive plans (7,662 shares at $25.12 average cost per share)		-		-		(193	)		-			193			-			-			-
ESOP shares allocated (11,994 shares)		-		-		(24	)		286			-			-			-			262
Balance at June 30, 2026	$	-	$	85	$	108,271		$	(3,151	)	$	(11,374	)	$	116,910		$	(13,336	)	$	197,405

Balance at January 1, 2025	$	-	$	85	$	108,334		$	(4,010	)	$	(10,762	)	$	101,264		$	(20,146	)	$	174,765
Net income		-		-		-			-			-			6,476			-			6,476
Other comprehensive income, net of tax		-		-		-			-			-			-			2,288			2,288
Dividends paid ($0.2850 per share)		-		-		-			-			-			(2,270	)		-			(2,270	)
Stock compensation expense		-		-		345			-			-			-			-			345
ESOP shares allocated (11,994 shares)		-		-		(89	)		286			-			-			-			197
Treasury stock purchased (75,000 shares at $15.52 average cost per share)		-		-		-			-			(1,163	)		-			-			(1,163	)
Balance at June 30, 2025	$	-	$	85	$	108,590		$	(3,724	)	$	(11,925	)	$	105,470		$	(17,858	)	$	180,638

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six Months Ended
	June 30,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	7,699		$	6,476
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provision for credit losses		622			1,080
Depreciation		2,497			2,633
Net amortization of investment securities premiums and discounts		366			351
Amortization of mortgage servicing rights		1,157			882
Amortization of right-of-use assets		198			239
Amortization of core deposit intangibles		520			618
Compensation expense related to restricted stock awards		402			345
ESOP compensation expense for allocated shares		262			197
Net gain on sale of loans		(3,903	)		(3,432	)
Originations of loans held-for-sale		(147,292	)		(98,554	)
Proceeds from sales of loans held-for-sale		141,676			101,077
Net loss on sale of real estate owned and other repossessed assets		10			10
Net gain on insurance proceeds related to premises and equipment		(488	)		-
Net gain on sale/disposal of premises and equipment		(25	)		-
Net appreciation in cash surrender value of life insurance		(769	)		(708	)
Net change in:
Accrued interest and dividends receivable		206			(1,784	)
Other assets		(987	)		918
Accrued expenses and other liabilities		(8,946	)		(6,717	)
Net cash (used in) provided by operating activities		(6,795	)		3,631

CASH FLOWS FROM INVESTING ACTIVITIES:
Activity in available-for-sale securities:
Maturities, principal payments and calls		10,197			13,340
Purchases		(15,186	)		(3,023	)
FHLB stock (purchased) redeemed		(2,351	)		778
Loan origination and principal collection, net		(39,551	)		(49,117	)
Insurance proceeds related to premises and equipment		488			-
Purchases of premises and equipment, net		(1,179	)		(1,981	)
Net cash used in investing activities		(47,582	)		(40,003	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits		8,605			56,697
Net short-term advances on FHLB and other borrowings		28,580			20,977
Advances on long-term FHLB and other borrowings		-			20,000
Payments on long-term FHLB and other borrowings		(14,500	)		(62,500	)
Purchase of treasury stock		-			(1,163	)
Dividends paid		(2,310	)		(2,270	)
Net cash provided by financing activities		20,375			31,741

NET DECREASE IN CASH AND CASH EQUIVALENTS		(34,002	)		(4,631	)

CASH AND CASH EQUIVALENTS, beginning of period		62,962			31,559

CASH AND CASH EQUIVALENTS, end of period	$	28,960		$	26,928

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In Thousands)
(Unaudited)

	Six Months Ended
	June 30,
	2026			2025
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for interest	$	15,995		$	19,858
Cash paid during the period for income taxes, net of refunds		2,295			477

NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES:
(Decrease) increase in fair value of securities available-for-sale	$	(621	)	$	3,115
Mortgage servicing rights recognized		999			626
Right-of-use assets obtained in exchange for lease liabilities		-			3
Loans transferred to real estate and other assets acquired in foreclosure		-			91
Decrease in commitments to invest in Low-Income Housing Tax Credit projects		-			(31	)
Premises and equipment acquired through non-cash trade-in		36			-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Eagle Bancorp Montana, Inc. (“Eagle” or the “Company”), is a Delaware corporation that holds 100% of the capital stock of Opportunity Bank of Montana (“OBMT” or the “Bank”), formerly American Federal Savings Bank (“AFSB”). The Bank was founded in 1922 as a Montana chartered building and loan association and has conducted operations and maintained its administrative office in Helena, Montana since that time. In 1975, the Bank adopted a federal thrift charter and in October 2014 converted to a Montana chartered commercial bank and became a member bank in the Federal Reserve System.

Eagle Bancorp Statutory Trust I (the "Trust") was established in September 2005 and is owned 100% by Eagle.

In March 2021, the Bank established a subsidiary, Opportunity Housing Fund, LLC ("OHF"), to invest in Low-Income Housing Tax Credit ("LIHTC") projects. The LIHTC program is designed to encourage capital investment in construction and rehabilitation of low-income housing. During the year ended December 31,2021, OHF made investments in two LIHTC projects. Tax credits are allowable over a 10-year period. Amortizing investments in LIHTC projects are included in other assets on the condensed consolidated statements of financial condition and totaled$5,571,000 and $5,963,000 as of June 30, 2026 and December 31, 2025, respectively. Outstanding funding obligations for LIHTC projects are included in accrued expenses and other liabilities on the condensed consolidated statements of financial condition and totaled $166,000 as of June 30, 2026 and December 31, 2025.

Opportunity Financial Services, Inc. ("OFS") facilitates deferred payment contracts for customers that produce agricultural products. The revenue from these contracts is accounted for in accordance with ASC Topic 606. The Company is considered an agent in these contracts, as: (i) the Company facilitates payment from customer to supplier, (ii) the Company does not take inventory of commodities as they are delivered by supplier to the customer, (iii) pricing of commodities is determined by the market, (iv) consideration on deferred payment contracts is insignificant to the Company and (v) the Company’s exposure to credit risk is minimal. Revenue is recognized net of expenses and reported in other noninterest income in the financial statements. Commodity sales income and the corresponding commodity sales expense were $1,219,000 and $2,798,000 for the three months ended June 30, 2026 and 2025, respectively, for a net impact of $0. Commodity sales income and the corresponding commodity sales expense were $3,370,000 and $5,112,000 for the six months ended June 30, 2026 and 2025, respectively, for a net impact of $0. Outstanding deferred contracts payable are included in accrued expenses and other liabilities on the condensed consolidated statements of financial condition and totaled $14,847,000 and $23,549,000 as of June 30, 2026 and December 31, 2025, respectively.

The Bank is headquartered in Helena, Montana, and has additional branches in Ashland, Big Timber, Billings, Bozeman, Butte, Choteau, Culbertson, Denton, Dutton, Froid, Glasgow, Great Falls, Hamilton, Hinsdale, Livingston, Missoula, Sheridan, Three Forks, Townsend, Twin Bridges, Winifred and Wolf Point, Montana. The Bank currently has 30 full-service branches. The Bank’s principal business is accepting deposits and, together with funds generated from operations and borrowings, investing in various types of loans and securities.

Basis of Financial Statement Presentation and Use of Estimates

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the Company’s Annual Report on Form 10-K with all of the audited information and footnotes required by U.S. GAAP for complete financial statements for the year ended December 31, 2025, as filed with the SEC on March 9, 2026. In the opinion of management, all normal adjustments and recurring accruals considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included.

The results of operations for the six-month period ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or any other period. In preparing condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated statement of financial condition and reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses ("ACL"), mortgage servicing rights, the fair value of financial instruments, the valuation of goodwill and deferred tax assets and liabilities.

Principles of Consolidation

The condensed consolidated financial statements include Eagle, the Bank, OHF, Eagle Bancorp Statutory Trust I (the “Trust”) and OFS. All significant intercompany transactions and balances have been eliminated in consolidation.

Subsequent Events

The Company has evaluated events and transactions subsequent to June 30, 2026 for recognition and/or disclosure.

Goodwill

Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company tests goodwill for impairment annually as of October 31, or more often if events or circumstances, such as adverse changes in the business climate indicate there may be impairment. 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 thy carrying amount exceeds the reporting unit’s fair value. For goodwill considerations the Company is a single reporting unit.

Our quantitative annual impairment test as of October 31, 2025 did not result in impairment. The annual goodwill impairment test for 2026 will be performed as of October 31.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued

Segment Reporting

Management considers operations to be aggregated in one operating segment, as well as one reportable segment. The Company operates as one line of business (community banking) by providing a similar base of commercial and retail customers with comparable product and service offerings throughout our Montana markets. The Chief Executive Officer (“CEO”) serves as the Company’s chief operating decision maker (“CODM”).

The CODM is responsible for assessing performance and allocating operating and capital expenditure resources. The CODM regularly assesses the performance of the single operating and reporting segment based on consolidated net income. The CODM reviews expenses at a level consistent with those reported in the Company’s consolidated statements of income. All significant expense categories are reflected in the consolidated statements of income. The measure of segment assets is reflected in the consolidated statements of financial condition as total assets.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The updated accounting guidance requires enhanced income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis, but retrospective application is permitted. The amendments in this ASU became effective for the Company on January 1, 2025 and did not have a significant impact on the Company’s financial position, results of operations, or liquidity.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires that public companies disclose details about specific expenses, among other things, such as employee compensation, depreciation, amortization, depletion, and inventory purchases. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date identified under ASU No. 2024-03. The Company is currently evaluating the effect the ASU will have on its consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which amends the accounting for acquired loans by introducing a category of purchased seasoned loans and expanding the use of the gross-up approach, requiring qualifying acquired loans to be recorded at purchase price plus an allowance for expected credit losses rather than recognizing a Day-1 provision through earnings. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, and is to be applied prospectively, with early adoption permitted. The Company has concluded that the impact of adoption will not be material as the standard is adopted prospectively.

NOTE 2.INVESTMENT SECURITIES

The amortized cost and fair values of securities, together with unrealized gains and losses, were as follows:

	June 30, 2026
			Gross		Gross
	Amortized		Unrealized		Unrealized					Fair
	Cost		Gains		Losses			ACL		Value
	(In Thousands)
Available-for-sale:
U.S. government and agency obligations	$	3,904	$	34	$	(108	)	$	-	$	3,830
U.S. treasury obligations		47,685		-		(3,587	)		-		44,098
Municipal obligations		134,912		5		(9,252	)		-		125,665
Corporate obligations		1,000		-		(3	)		-		997
Mortgage-backed securities		26,056		164		(982	)		-		25,238
Collateralized mortgage obligations		83,938		35		(4,424	)		-		79,549
Asset-backed securities		6,272		36		(9	)		-		6,299
Total	$	303,767	$	274	$	(18,365	)	$	-	$	285,676

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 2.INVESTMENT SECURITIES– continued

	December 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized					Fair
	Cost		Gains		Losses			ACL		Value
	(In Thousands)
Available-for-sale:
U.S. government and agency obligations	$	4,179	$	62	$	(86	)	$	-	$	4,155
U.S. treasury obligations		47,665		-		(3,357	)		-		44,308
Municipal obligations		127,469		53		(9,198	)		-		118,324
Corporate obligations		2,000		-		(29	)		-		1,971
Mortgage-backed securities		27,222		180		(908	)		-		26,494
Collateralized mortgage obligations		83,907		49		(4,295	)		-		79,661
Asset-backed securities		6,720		60		(1	)		-		6,779
Total	$	299,162	$	404	$	(17,874	)	$	-	$	281,692

There was no sales activity for available-for-sale securities during the three or six months ended June 30, 2026 or 2025.

The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2026
	Amortized		Fair
	Cost		Value
	(In Thousands)
Due in one year or less	$	1,055	$	1,051
Due from one to five years		51,016		47,991
Due from five to ten years		69,028		61,913
Due after ten years		72,674		69,934
		193,773		180,889
Mortgage-backed securities		26,056		25,238
Collateralized mortgage obligations		83,938		79,549
Total	$	303,767	$	285,676

As of June 30, 2026 and December 31, 2025, securities with a fair value of $19,903,000 and $19,976,000, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The Company’s investment securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve or more months were as follows:

	June 30, 2026
	Less than 12 Months					12 Months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	-	$	-		$	1,826	$	(108	)
U.S. treasury obligations		-		-			44,098		(3,587	)
Municipal obligations		24,321		(202	)		98,317		(9,050	)
Corporate obligations		997		(3	)		-		-
Mortgage-backed securities and collateralized mortgage obligations		17,453		(117	)		69,285		(5,289	)
Asset-backed securities		3,103		(8	)		130		(1	)
Total	$	45,874	$	(330	)	$	213,656	$	(18,035	)

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 2.INVESTMENT SECURITIES– continued

	December 31, 2025
	Less than 12 months					12 months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	-	$	-		$	1,848	$	(86	)
U.S. treasury obligations		-		-			44,308		(3,357	)
Municipal obligations		4,250		(101	)		107,365		(9,097	)
Corporate obligations		-		-			1,971		(29	)
Mortgage-backed securities and collateralized mortgage obligations		5,961		(42	)		73,924		(5,161	)
Asset-backed securities		-		-			164		(1	)
Total	$	10,211	$	(143	)	$	229,580	$	(17,731	)

As of June 30, 2026 and December 31, 2025, 254 and 241 securities, respectively, were in unrealized loss positions. Based on analysis of available-for-sale debt securities with unrealized losses as of June 30, 2026, the Company determined the decline in value was unrelated to credit losses and was primarily caused by changes in interest rates and market spreads subsequent to the initial purchase of the securities. Management does not intend to sell and the Company is not likely to be required to sell these securities prior to maturity. As a result, no ACL was recorded on available-for-sale securities at June 30, 2026 and December 31, 2025. As part of this determination, consideration was given to the extent to which fair value was less than amortized cost, rating downgrades by a rating agency and other factors.

NOTE 3.LOANS RECEIVABLE

Loans receivable consisted of the following:

	June 30,			December 31,
	2026			2025
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	189,376		$	183,793
Commercial real estate		940,507			918,839

Other loans:
Home equity		108,629			108,073
Consumer		21,459			24,424
Commercial		298,373			283,890

Total		1,558,344			1,519,019

Allowance for credit losses		(17,640	)		(17,370	)
Total loans, net	$	1,540,704		$	1,501,649

Included in the above are loans guaranteed by U.S. government agencies totaling $15,853,000 and $12,091,000 at June 30, 2026 and December 31, 2025, respectively.

The following table provides allowance for credit losses activity for the three months ended June 30, 2026.

	Residential			Commercial		Home
	1-4 Family			Real Estate		Equity		Consumer			Commercial			Total
	(In Thousands)
Allowance for credit losses on loans:
Beginning balance, April 1, 2026	$	1,973		$	11,363	$	551	$	45		$	3,498		$	17,430
Charge-offs		-			-		-		(98	)		(103	)		(201	)
Recoveries		-			5		-		1			2			8
(Recapture) provision		(215	)		252		12		247			107			403
Total ending allowance balance, June 30, 2026	$	1,758		$	11,620	$	563	$	195		$	3,504		$	17,640

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3.LOANS RECEIVABLE – continued

The following table provides allowance for credit losses activity for the six months ended June 30, 2026.

	Residential			Commercial		Home
	1-4 Family			Real Estate		Equity		Consumer			Commercial			Total
	(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2026	$	1,965		$	11,295	$	547	$	84		$	3,479		$	17,370
Charge-offs		-			-		-		(138	)		(117	)		(255	)
Recoveries		-			9		-		1			3			13
(Recapture) provision		(207	)		316		16		248			139			512
Total ending allowance balance, June 30, 2026	$	1,758		$	11,620	$	563	$	195		$	3,504		$	17,640

The following table provides allowance for credit losses activity for the three months ended June 30, 2025.

	Residential		Commercial		Home
	1-4 Family		Real Estate		Equity			Consumer			Commercial		Total
	(In Thousands)
Allowance for credit losses on loans:
Beginning balance, April 1, 2025	$	1,904	$	10,830	$	551		$	239		$	3,196	$	16,720
Charge-offs		-		-		(27	)		(24	)		-		(51	)
Recoveries		-		3		-			-			-		3
Provision		101		589		15			7			346		1,058
Total ending allowance balance, June 30, 2025	$	2,005	$	11,422	$	539		$	222		$	3,542	$	17,730

The following table provides allowance for credit losses activity for the six months ended June 30, 2025.

	Residential		Commercial		Home
	1-4 Family		Real Estate		Equity			Consumer			Commercial		Total
	(In Thousands)
Allowance for credit losses on loans:
Beginning balance, January 1, 2025	$	1,911	$	10,907	$	553		$	245		$	3,234	$	16,850
Charge-offs		-		-		(27	)		(30	)		-		(57	)
Recoveries		-		5		-			1			1		7
Provision		94		510		13			6			307		930
Total ending allowance balance, June 30, 2025	$	2,005	$	11,422	$	539		$	222		$	3,542	$	17,730

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3.LOANS RECEIVABLE – continued

Internal classification of the loan portfolio by amortized cost and based on year originated was as follows:

	June 30, 2026
	2026		2025		2024		2023		2022		Prior		Revolving Loans		Total Loans
	(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass	$	13,410	$	16,430	$	14,306	$	20,430	$	24,069	$	51,984	$	1,743	$	142,372
Substandard		-		-		-		-		712		664		-		1,376
Total Residential 1-4 family		13,410		16,430		14,306		20,430		24,781		52,648		1,743		143,748
Current-period gross charge-offs		-		-		-		-		-		-		-		-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass		17,404		16,612		640		-		10,129		-		494		45,279
Special Mention		-		-		349		-		-		-		-		349
Total Residential 1-4 family construction		17,404		16,612		989		-		10,129		-		494		45,628
Current-period gross charge-offs		-		-		-		-		-		-		-		-
COMMERCIAL REAL ESTATE
Pass		55,737		47,438		68,161		60,963		169,996		232,554		38,573		673,422
Special Mention		-		-		-		784		380		1,966		2,803		5,933
Substandard		-		-		-		487		-		4,539		-		5,026
Total Commercial real estate		55,737		47,438		68,161		62,234		170,376		239,059		41,376		684,381
Current-period gross charge-offs		-		-		-		-		-		-		-		-
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass		5,576		37,687		11,524		7,352		12,711		17,249		5,089		97,188
Special Mention		-		-		-		755		-		-		-		755
Substandard		-		-		-		-		-		908		-		908
Total Commercial construction and development		5,576		37,687		11,524		8,107		12,711		18,157		5,089		98,851
Current-period gross charge-offs		-		-		-		-		-		-		-		-
FARMLAND
Pass		8,821		27,434		18,914		14,120		25,211		56,659		1,805		152,964
Special Mention		556		-		-		1,099		39		66		-		1,760
Substandard		-		-		237		-		1,118		1,140		56		2,551
Total Farmland		9,377		27,434		19,151		15,219		26,368		57,865		1,861		157,275
Current-period gross charge-offs		-		-		-		-		-		-		-		-
HOME EQUITY
Pass		4,876		1,855		1,167		870		605		1,908		96,527		107,808
Special Mention		-		-		-		-		-		18		226		244
Substandard		-		-		-		-		-		58		519		577
Total Home Equity		4,876		1,855		1,167		870		605		1,984		97,272		108,629
Current-period gross charge-offs		-		-		-		-		-		-		-		-
CONSUMER
Pass		4,272		6,033		4,079		2,639		1,601		905		1,786		21,315
Special Mention		-		-		-		-		-		-		18		18
Substandard		-		50		-		74		2		-		-		126
Total Consumer		4,272		6,083		4,079		2,713		1,603		905		1,804		21,459
Current-period gross charge-offs		-		65		52		13		7		-		1		138
COMMERCIAL
Pass		23,750		26,454		23,370		17,706		7,827		21,012		39,339		159,458
Special Mention		139		-		-		285		142		44		192		802
Substandard		-		-		1,001		-		-		110		4		1,115
Doubtful		-		82		-		-		-		-		-		82
Total Commercial		23,889		26,536		24,371		17,991		7,969		21,166		39,535		161,457
Current-period gross charge-offs		-		-		63		40		-		14		-		117
AGRICULTURAL
Pass		20,201		22,367		8,762		4,814		3,270		2,361		69,578		131,353
Special Mention		1,054		530		-		851		-		-		549		2,984
Substandard		-		-		-		1,450		-		902		227		2,579
Total Agricultural		21,255		22,897		8,762		7,115		3,270		3,263		70,354		136,916
Current-period gross charge-offs		-		-		-		-		-		-		-		-
TOTAL LOANS
Pass		154,047		202,310		150,923		128,894		255,419		384,632		254,934		1,531,159
Special Mention		1,749		530		349		3,774		561		2,094		3,788		12,845
Substandard		-		50		1,238		2,011		1,832		8,321		806		14,258
Doubtful		-		82		-		-		-		-		-		82
Total	$	155,796	$	202,972	$	152,510	$	134,679	$	257,812	$	395,047	$	259,528	$	1,558,344

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3.LOANS RECEIVABLE – continued

	December 31, 2025
	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans
	(In Thousands)
RESIDENTIAL 1-4 FAMILY
Pass	$	20,044	$	15,428	$	22,525	$	29,851	$	17,751	$	40,339	$	1,333	$	147,271
Substandard		-		-		-		719		-		525		-		1,244
Total Residential 1-4 family		20,044		15,428		22,525		30,570		17,751		40,864		1,333		148,515
Current-period gross charge-offs		-		-		-		-		-		-		-		-
RESIDENTIAL 1-4 FAMILY CONSTRUCTION
Pass		19,065		3,975		1,760		10,129		-		-		-		34,929
Special Mention		-		349		-		-		-		-		-		349
Total Residential 1-4 family construction		19,065		4,324		1,760		10,129		-		-		-		35,278
Current-period gross charge-offs		-		-		-		-		-		-		-		-
COMMERCIAL REAL ESTATE
Pass		41,530		51,964		63,566		177,502		112,350		141,336		39,155		627,403
Special Mention		-		-		-		407		-		1,265		2,989		4,661
Substandard		-		-		512		-		424		2,970		-		3,906
Total Commercial real estate		41,530		51,964		64,078		177,909		112,774		145,571		42,144		635,970
Current-period gross charge-offs		-		-		-		-		-		33		-		33
COMMERCIAL CONSTRUCTION AND DEVELOPMENT
Pass		44,051		26,041		9,483		14,272		7,325		11,853		6,339		119,364
Substandard		-		-		-		-		-		925		-		925
Total Commercial construction and development		44,051		26,041		9,483		14,272		7,325		12,778		6,339		120,289
Current-period gross charge-offs		-		-		-		-		-		-		-		-
FARMLAND
Pass		30,610		19,993		16,219		26,109		17,580		45,784		1,961		158,256
Special Mention		-		-		827		570		62		719		-		2,178
Substandard		-		188		55		1,118		-		729		56		2,146
Total Farmland		30,610		20,181		17,101		27,797		17,642		47,232		2,017		162,580
Current-period gross charge-offs		-		-		-		-		-		-		-		-
HOME EQUITY
Pass		2,162		1,218		1,018		2,804		281		2,227		97,660		107,370
Special Mention		-		-		-		-		-		21		348		369
Substandard		-		-		33		-		40		11		250		334
Total Home Equity		2,162		1,218		1,051		2,804		321		2,259		98,258		108,073
Current-period gross charge-offs		-		1		-		-		-		26		-		27
CONSUMER
Pass		9,069		5,536		3,899		2,312		654		670		1,973		24,113
Special Mention		-		-		6		-		-		-		-		6
Substandard		113		59		92		10		-		16		15		305
Total Consumer		9,182		5,595		3,997		2,322		654		686		1,988		24,424
Current-period gross charge-offs		-		17		47		14		-		83		14		175
COMMERCIAL
Pass		27,402		26,864		19,468		13,647		10,284		15,376		34,160		147,201
Special Mention		-		-		311		164		-		-		347		822
Substandard		92		1,111		41		-		18		142		4		1,408
Total Commercial		27,494		27,975		19,820		13,811		10,302		15,518		34,511		149,431
Current-period gross charge-offs		-		-		-		6		-		-		-		6
AGRICULTURAL
Pass		42,889		15,230		7,802		5,210		2,415		2,501		52,014		128,061
Special Mention		442		1,112		1,590		2		17		626		543		4,332
Substandard		-		1,035		824		-		-		207		-		2,066
Total Agricultural		43,331		17,377		10,216		5,212		2,432		3,334		52,557		134,459
Current-period gross charge-offs		-		-		-		-		-		-		-		-
TOTAL LOANS
Pass		236,822		166,249		145,740		281,836		168,640		260,086		234,595		1,493,968
Special Mention		442		1,461		2,734		1,143		79		2,631		4,227		12,717
Substandard		205		2,393		1,557		1,847		482		5,525		325		12,334
Total	$	237,469	$	170,103	$	150,031	$	284,826	$	169,201	$	268,242	$	239,147	$	1,519,019

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3.LOANS RECEIVABLE – continued

The following tables include information regarding delinquencies within the loan portfolio.

	June 30, 2026
	Loans Past Due and Still Accruing
			90 Days				Nonaccrual		Nonaccrual
	30-89 Days		and				Loans with		Loans with		Current		Total
	Past Due		Greater		Total		no ACL		ACL		Loans		Loans
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	1,858	$	84	$	1,942	$	184	$	-	$	141,622	$	143,748
Residential 1-4 family construction		-		-		-		-		-		45,628		45,628
Commercial real estate		838		555		1,393		420		-		682,568		684,381
Commercial construction and development		533		-		533		1		-		98,317		98,851
Farmland		1,868		-		1,868		815		-		154,592		157,275
Other loans:
Home equity		247		-		247		811		-		107,571		108,629
Consumer		240		-		240		49		24		21,146		21,459
Commercial		624		-		624		73		86		160,674		161,457
Agricultural		52		565		617		498		-		135,801		136,916
Total	$	6,260	$	1,204	$	7,464	$	2,851	$	110	$	1,547,919	$	1,558,344

	December 31, 2025
	Loans Past Due and Still Accruing
			90 Days				Nonaccrual		Nonaccrual
	30-89 Days		and				Loans with		Loans with		Current		Total
	Past Due		Greater		Total		no ACL		ACL		Loans		Loans
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	1,591	$	48	$	1,639	$	298	$	-	$	146,578	$	148,515
Residential 1-4 family construction		-		-		-		-		-		35,278		35,278
Commercial real estate		660		-		660		420		-		634,890		635,970
Commercial construction and development		213		-		213		1		-		120,075		120,289
Farmland		481		841		1,322		308		-		160,950		162,580
Other loans:
Home equity		637		-		637		395		-		107,041		108,073
Consumer		203		-		203		101		109		24,011		24,424
Commercial		557		10		567		183		96		148,585		149,431
Agricultural		168		2,645		2,813		177		-		131,469		134,459
Total	$	4,510	$	3,544	$	8,054	$	1,883	$	205	$	1,508,877	$	1,519,019

Interest income recognized on nonaccrual loans for the three and six months ended June 30, 2026 and 2025 is considered insignificant. Interest payments received on a cash basis related to nonaccrual loans were $247,000 at June 30, 2026 and $262,000 at December 31, 2025.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans and collateral type.

	June 30, 2026
	Real Estate		Business Assets		Other
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	897	$	-	$	-
Commercial real estate		93		975		-
Commercial construction and development		1		-		-
Farmland		2,651		-		-
Other loans:
Home equity		474		-		-
Consumer		-		-		69
Commercial		-		248		4
Agricultural		-		857		-
Total	$	4,116	$	2,080	$	73

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 3. LOANS RECEIVABLE – continued

	December 31, 2025
	Real Estate		Business Assets		Other
	(In Thousands)
Real estate loans:
Residential 1-4 family	$	822	$	-	$	-
Commercial real estate		97		492		-
Commercial construction and development		1		-		-
Farmland		1,143		-		-
Other loans:
Home equity		278		-		-
Consumer		-		-		202
Commercial		-		482		14
Agricultural		-		2,645		-
Total	$	2,341	$	3,619	$	216

The Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, term extensions, other than insignificant payment delays, or any combination of these.

The following tables include the amortized cost basis at the period end for the loans modified to borrowers experiencing financial difficulty.

There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended June 30, 2026.

	As of or For the
	Six Months Ended
	June 30, 2026
	Term Extension and Payment Deferral					Term Extension and Interest Rate Reduction
	Amortized Cost Basis		Percent of Loan Category			Amortized Cost Basis		Percent of Loan Category			Total Amortized Cost Basis		Total Number of Loans
	(Dollars in Thousands)
Other loans:
Agricultural	$	156		0.11	%	$	-		0.00	%	$	156		1
Total	$	156				$	-				$	156		1

	As of or For the
	Three Months Ended
	June 30, 2025
	Term Extension and Payment Deferral					Term Extension and Interest Rate Reduction
	Amortized Cost Basis		Percent of Loan Category			Amortized Cost Basis		Percent of Loan Category			Total Amortized Cost Basis		Total Number of Loans
	(Dollars in Thousands)
Real estate loans:
Residential 1-4 family	$	625		0.42	%	$	-		0.00	%	$	625		1
Farmland		108		0.07			-		0.00			108		1
Other loans:
Home equity		70		0.07			-		0.00			70		1
Agricultural		150		0.10			6		0.00			156		2
Total	$	953				$	6				$	959		5

	As of or For the
	Six Months Ended
	June 30, 2025
	Term Extension and Payment Deferral					Term Extension and Interest Rate Reduction
	Amortized Cost Basis		Percent of Loan Category			Amortized Cost Basis		Percent of Loan Category			Total Amortized Cost Basis		Total Number of Loans
	(Dollars in Thousands)
Real estate loans:
Residential 1-4 family	$	625		0.42	%	$	-		0.00	%	$	625		1
Commercial real estate		-		0.00			209		0.03			209		1
Farmland		108		0.07			-		0.00			108		1
Other loans:
Home equity		114		0.11			-		0.00			114		2
Agricultural		403		0.26			6		0.00			409		4
Total	$	1,250				$	215				$	1,465		9

During the three and six months ended June 30, 2026 and 2025, no loans modified for borrowers experiencing financial difficulty within the previous twelve months experienced a payment default.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 4. MORTGAGE SERVICING RIGHTS

The Company is servicing mortgage loans for the benefit of others which are not included in the condensed consolidated statements of financial condition and have unpaid principal balances of $1,966,813,000 and $1,976,243,000 at June 30, 2026 and December 31, 2025, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Mortgage loan servicing fees were $1,227,000 and $1,255,000 for the three months ended June 30, 2026 and 2025, respectively. Mortgage loan servicing fees were $2,461,000 and $2,511,000 for the six months ended June 30, 2026 and 2025, respectively. These fees, net of amortization, are included in mortgage banking, net, which is a component of noninterest income on the condensed consolidated statements of income.

Custodial balances maintained in connection with the foregoing loan servicing are included in noninterest checking deposits and were $19,115,000 and $15,598,000 at June 30, 2026 and December 31, 2025, respectively.

The following is a summary of activity in mortgage servicing rights:

	As of or For the
	Three Months Ended
	June 30,
	2026			2025
	(In Thousands)
Mortgage servicing rights:
Beginning balance	$	14,909		$	15,282
Mortgage servicing rights capitalized		513			355
Amortization of mortgage servicing rights		(537	)		(517	)
Mortgage servicing rights, net	$	14,885		$	15,120

	As of or For the
	Six Months Ended
	June 30,
	2026			2025
	(In Thousands)
Mortgage servicing rights:
Beginning balance	$	15,043		$	15,376
Mortgage servicing rights capitalized		999			626
Amortization of mortgage servicing rights		(1,157	)		(882	)
Mortgage servicing rights, net	$	14,885		$	15,120

The fair values of these mortgage servicing rights were $19,815,000 and $20,302,000 at June 30, 2026 and December 31, 2025, respectively. The fair value of mortgage servicing rights was determined at loan level, depending on the interest rate and term of the specific loan, using the following valuation assumptions:

	June 30,			December 31,
	2026			2025
Key assumptions:
Discount rate		12	%		12	%
Prepayment speed range		95 - 236	%		90 - 211	%
Weighted average prepayment speed		126	%		119	%

NOTE 5.DEPOSITS

Deposits are summarized as follows:

	June 30,		December 31,
	2026		2025
	(In Thousands)
Noninterest checking	$	448,260	$	452,183
Interest-bearing checking		212,749		218,484
Savings		210,389		207,789
Money market		451,373		440,971
Time certificates of deposit		467,433		462,172
Total	$	1,790,204	$	1,781,599

There were no brokered time certificates of deposit at June 30, 2026 and December 31, 2025.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 6.OTHER LONG-TERM DEBT

Other long-term debt consisted of the following:

	June 30, 2026					December 31, 2025
			Unamortized					Unamortized
			Debt					Debt
	Principal		Issuance			Principal		Issuance
	Amount		Costs			Amount		Costs
	(In Thousands)
Subordinated debentures fixed at 3.50% to floating, due 2032	$	40,000	$	(647	)	$	40,000	$	(705	)
Subordinated debentures variable at 3-Month SOFR plus 1.68%, due 2035		5,155		-			5,155		-
Total other long-term debt	$	45,155	$	(647	)	$	45,155	$	(705	)

In January 2022, the Company completed the issuance of $40,000,000 in aggregate principal amount of subordinated notes due in 2032 in a private placement transaction to certain institutional accredited investors and qualified buyers. The notes bear interest at an annual fixed rate of 3.50% payable semi-annually. Starting February 1, 2027, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be three-month term Secured Overnight Financing Rate ("SOFR") plus a spread of 218.0 basis points, payable quarterly. The notes are subject to redemption at the option of the Company on or after February 1, 2027. The subordinated debentures qualify as Tier 2 capital for regulatory capital purposes.

In June 2020, the Company completed the issuance of $15,000,000 in aggregate principal amount of subordinated notes due in 2030 in a private placement transaction to certain qualified institutional accredited investors. The notes bore interest at an annual fixed rate of 5.50% payable semi-annually. Starting July 1, 2025, interest accrued at a floating rate per annum equal to a benchmark rate, which was three-month term SOFR plus a spread of 509.0 basis points, payable quarterly. The floating rate was 9.39% for the three months ended September 30, 2025. The notes were subject to redemption at the option of the Company on or after July 1, 2025. The subordinated debentures qualified as Tier 2 capital for regulatory capital purposes. The notes were redeemed October 1, 2025 utilizing a line of credit with a correspondent bank to finance the redemption payment. The line of credit rate is based on Prime minus 50.0 basis points and was 6.25% as of June 30, 2026 and December 31, 2025.

In September 2005, the Company completed the private placement of $5,155,000 in subordinated debentures to the Trust. The Trust funded the purchase of the subordinated debentures through the sale of trust preferred securities with a liquidation value of $5,155,000. Using interest payments made by the Company on the debentures, the Trust began paying quarterly dividends to preferred security holders in December 2005. The annual percentage rate of the interest payable on the subordinated debentures and distributions payable on the preferred securities was fixed at 6.02% until December 2010 then became variable at three-month LIBOR plus 1.42%. In December of 2022, Governors of the Federal Reserve System adopted final rule 12 C.F.R. Part 253, Regulation Implementing the Adjustable Interest Rate (LIBOR) Act. Rule 253 identified SOFR-benchmark rates to replace LIBOR in certain financial contracts after June 30, 2023. As a result, the variable rate for interest payable converted to three-month CME Term SOFR plus 1.68% during the quarter ended March 31, 2024. The rate was 5.42% as of June 30, 2026 and 5.33% as of December 31, 2025. Dividends on the preferred securities are cumulative and the Trust may defer the payments for up to five years. The preferred securities mature in December 2035 unless the Company elects and obtains regulatory approval to accelerate the maturity date. The subordinated debentures qualify as Tier 1 capital for regulatory purposes.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 7. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table includes information regarding the activity in accumulated other comprehensive income (loss).

	Unrealized
	(Losses) Gains
	on Securities
	Available for Sale
	(In Thousands)
Balance at April 1, 2026	$	(14,880	)
Other comprehensive income, before reclassifications and income taxes		2,101
Amounts reclassified from accumulated other comprehensive loss, before income taxes		-
Income tax provision		(557	)
Total other comprehensive income		1,544
Balance at June 30, 2026	$	(13,336	)

Balance at April 1, 2025	$	(18,945	)
Other comprehensive income, before reclassifications and income taxes		1,475
Amounts reclassified from accumulated other comprehensive loss, before income taxes		-
Income tax provision		(388	)
Total other comprehensive income		1,087
Balance at June 30, 2025	$	(17,858	)

Balance at January 1, 2026	$	(12,874	)
Other comprehensive loss, before reclassifications and income taxes		(621	)
Amounts reclassified from accumulated other comprehensive loss, before income taxes		-
Income tax benefit		159
Total other comprehensive loss		(462	)
Balance at June 30, 2026	$	(13,336	)

Balance at January 1, 2025	$	(20,146	)
Other comprehensive income, before reclassifications and income taxes		3,115
Amounts reclassified from accumulated other comprehensive loss, before income taxes		-
Income tax provision		(827	)
Total other comprehensive income		2,288
Balance at June 30, 2025	$	(17,858	)

NOTE 8.EARNINGS PER COMMON SHARE

The computations of basic and diluted earnings per common share are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(Dollars in Thousands,
	Except for Share Data)
Basic weighted average shares outstanding		7,827,552		7,791,320		7,823,216		7,801,726
Dilutive effect of stock compensation		34,913		21,336		32,022		17,387
Diluted weighted average shares outstanding		7,862,465		7,812,656		7,855,238		7,819,113

Net income available to common shareholders	$	3,715	$	3,237	$	7,699	$	6,476

Basic earnings per common share	$	0.47	$	0.42	$	0.98	$	0.83

Diluted earnings per common share	$	0.47	$	0.41	$	0.98	$	0.83

Restricted stock units excluded from the diluted average outstanding share calculation because their effect would be anti-dilutive		-		-		-		-

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 9. DERIVATIVES AND HEDGING ACTIVITIES

The Company enters into commitments to originate and sell mortgage loans. The Bank uses derivatives to hedge the risk of changes in fair values of interest rate lock commitments and mortgage loans held-for-sale. An optimal amount of mortgage loans are sold directly into bulk commitments with investors at the time an interest rate is locked, other loans are sold on an individual best-efforts basis at the time an interest rate is locked, and the remaining balance of locked loans are hedged using To-Be-Announced (“TBA”) mortgage-backed securities or bulk mandatory forward loan sale commitments.

Derivatives are accounted for as free-standing or economic derivatives and are measured at fair value. Derivatives are recorded as either other assets or other liabilities on the condensed consolidated statements of condition.

Derivatives are summarized as follows:

	June 30, 2026						December 31, 2025
	Notional		Fair Value				Notional		Fair Value
	Amount		Asset		Liability		Amount		Asset		Liability
	(In Thousands)
Interest rate lock commitments	$	14,201	$	-	$	70	$	14,949	$	-	$	49
Forward TBA mortgage-backed securities		15,000		-		21		16,000		-		55

Changes in the fair value of the derivatives are recorded in mortgage banking, net, within noninterest income on the condensed consolidated statements of income. Net losses of $213,000 were recorded for the three months ended June 30, 2026, compared to net losses of $70,000 for the three months ended June 30, 2025. Net gains of $13,000 were recorded for the six months ended June 30, 2026, compared to net losses of $162,000 for the six months ended June 30, 2025.

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Assets and liabilities that are measured at fair value are grouped in three levels within the fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

The fair value hierarchy is as follows:

■	Level 1 Inputs – Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

■

Level 2 Inputs – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data.

■	Level 3 Inputs – Valuations are based on unobservable inputs that may include significant management judgment and estimation.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy at the reporting date, is set forth below.

Available-for-Sale Securities – Securities classified as available-for-sale are reported at fair value utilizing Level 1 (nationally recognized securities exchanges) and Level 2 inputs. For Level 2 inputs securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include but is not limited to dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond’s terms and conditions.

Loans Held-for-Sale – These loans are reported at fair value. Fair value is determined based on expected proceeds based on committed sales contracts and commitments of similar loans if not already committed and are considered Level 2 inputs.

Derivative Instruments – The fair value of the interest rate lock commitments, forward TBA mortgage-backed securities and mandatory forward commitments are estimated using quoted or published market prices for similar instruments and adjusted for factors, such as pull-through rate assumptions based on historical information, where appropriate. Interest rate lock commitments are considered Level 3 inputs and forward TBA mortgage-backed securities and mandatory forward commitments are considered Level 2 inputs.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued

Collateral-Dependent Loans – Individually reviewed collateral-dependent loans are reported at the fair value of the underlying collateral less costs to sell. Collateral-dependent loans are considered Level 3 inputs of the fair value hierarchy. Collateral values are estimated using values determined in loan underwriting and discounted based on internally customized discounting criteria.

Real Estate and Other Repossessed Assets – Fair values are determined at the time the loan is foreclosed upon and the asset is transferred from loans. The value is based primarily on third-party appraisals, less costs to sell and are considered Level 3 inputs of the fair value hierarchy. Repossessed assets are reviewed and evaluated periodically for additional impairment and adjusted accordingly.

Mortgage Servicing Rights – The fair value of mortgage servicing rights are estimated using net present value of expected cash flows based on a third party model that incorporates industry assumptions and is adjusted for factors such as prepayment speeds and are considered Level 3 inputs.

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	June 30, 2026
	Level 1		Level 2		Level 3		Total Fair
	Inputs		Inputs		Inputs		Value
	(In Thousands)
Financial assets:
Available-for-sale securities:
U.S. government and agency obligations	$	-	$	3,830	$	-	$	3,830
U.S. treasury obligations		44,098		-		-		44,098
Municipal obligations		-		125,665		-		125,665
Corporate obligations		-		997		-		997
Mortgage-backed securities		-		25,238		-		25,238
Collateralized mortgage obligations		-		79,549		-		79,549
Asset-backed securities		-		6,299		-		6,299
Loans held-for-sale		-		15,972		-		15,972
Financial liabilities:
Forward TBA mortgage-backed securities		-		21		-		21
Interest rate lock commitments		-		-		70		70

	December 31, 2025
	Level 1		Level 2		Level 3		Total Fair
	Inputs		Inputs		Inputs		Value
	(In Thousands)
Financial assets:
Available-for-sale securities:
U.S. government and agency obligations	$	-	$	4,155	$	-	$	4,155
U.S. treasury obligations		44,308		-		-		44,308
Municipal obligations		-		118,324		-		118,324
Corporate obligations		-		1,971		-		1,971
Mortgage-backed securities		-		26,494		-		26,494
Collateralized mortgage obligations		-		79,661		-		79,661
Asset-backed securities		-		6,779		-		6,779
Loans held-for-sale		-		7,452		-		7,452
Financial liabilities:
Forward TBA mortgage-backed securities		-		55		-		55
Interest rate lock commitments		-		-		49		49

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued

Certain financial assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of lower of cost or fair value accounting or write-downs of individual assets, such as impaired loans that are collateral-dependent, real estate and other repossessed assets and mortgage servicing rights.

The following tables summarize financial assets measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value has been recorded during the reporting periods presented:

	June 30, 2026
	Level 1		Level 2		Level 3		Total Fair
	Inputs		Inputs		Inputs		Value
	(In Thousands)
Collateral-dependent loans individually evaluated, net of ACL	$	-	$	-	$	52	$	52

	December 31, 2025
	Level 1		Level 2		Level 3		Total Fair
	Inputs		Inputs		Inputs		Value
	(In Thousands)
Collateral-dependent loans individually evaluated, net of ACL	$	-	$	-	$	189	$	189

The following table represents the Bank's financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the valuation techniques used to measure the fair value of those assets and liabilities, and the significant unobservable inputs and the ranges of values for those inputs.

	Principal	Significant	Range of
	Valuation	Unobservable	Significant Input
Instrument	Technique	Inputs	Values

Collateral-dependent loans individually evaluated	Fair value of underlying collateral	Discount applied to the obtained appraisal		10 - 30%
Real estate and other repossessed assets	Fair value of collateral	Discount applied to the obtained appraisal		10 - 30%
Interest rate lock commitments	Internal pricing model	Pull-through expectations		85 - 96%

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable Level 3 inputs on a recurring basis.

	As of or For the						As of or For the
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
	Interest Rate Lock Commitments						Interest Rate Lock Commitments
	(In Thousands)						(In Thousands)
Beginning balance	$	(101	)	$	(28	)	$	(49	)	$	(103	)
Purchases and issuances		(173	)		(10	)		(419	)		(28	)
Sales and settlements		204			55			398			148
Ending balance	$	(70	)	$	17		$	(70	)	$	17
Unrealized gains (losses) related to items held during the period	$	31		$	45		$	(21	)	$	120

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS – continued

The tables below summarize the estimated fair values of financial instruments of the Company, whether or not recognized at fair value on the condensed consolidated statements of condition.

	June 30, 2026
	Level 1		Level 2		Level 3		Total		Carrying
	Inputs		Inputs		Inputs		Fair Value		Amount
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	28,960	$	-	$	-	$	28,960	$	28,960
FHLB stock		-		5,001		-		5,001		5,001
FRB stock		-		4,131		-		4,131		4,131
Loans receivable, gross		-		-		1,544,163		1,544,163		1,558,344
Mortgage servicing rights		-		-		19,815		19,815		14,885
Financial liabilities:
Time certificates of deposit		-		-		465,517		465,517		467,433
FHLB advances and other borrowings		-		-		52,150		52,150		52,102
Other long-term debt		-		-		44,401		44,401		45,155

	December 31, 2025
	Level 1		Level 2		Level 3		Total		Carrying
	Inputs		Inputs		Inputs		Fair Value		Amount
	(In Thousands)
Financial assets:
Cash and cash equivalents	$	62,962	$	-	$	-	$	62,962	$	62,962
FHLB stock		-		2,650		-		2,650		2,650
FRB stock		-		4,131		-		4,131		4,131
Loans receivable, gross		-		-		1,493,348		1,493,348		1,519,019
Mortgage servicing rights		-		-		20,302		20,302		15,043
Financial liabilities:
Time certificates of deposit		-		-		461,201		461,201		462,172
Federal Funds Purchased		-		-		105		105		105
FHLB advances and other borrowings		-		-		38,447		38,447		37,917
Other long-term debt		-		-		43,905		43,905		45,155

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

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.

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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:

	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	%

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:

	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

⁽¹⁾

Excludes loans held-for-sale.

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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 the Fair Debt Collection Act.

For mortgage loans and home equity loans, if the borrower is unable to cure the delinquency or reach a payment agreement, we will institute foreclosure actions. If a foreclosure action is taken and the loan is not reinstated, paid in full or refinanced, the property is sold at judicial sale at which we may be the buyer if there are no adequate offers to satisfy the debt. Any property acquired as the result of foreclosure, or by deed in lieu of foreclosure, is classified as real estate owned until such time as it is sold or otherwise disposed of. When real estate owned is acquired, it is recorded at its fair market value less estimated selling costs. The initial recording of any loss is charged to the allowance for credit losses. Subsequent write-downs are recorded as a charge to operations. As of June 30, 2026 and December 31, 2025 there was $70,000 and $98,000, respectively, of real estate owned and other repossessed property.

The following table sets forth information regarding nonperforming assets:

	June 30,			December 31,
	2026			2025
	(Dollars in Thousands)
Non-accrual loans
Real estate loans:
Residential 1-4 family	$	184		$	298
Commercial real estate		420			420
Commercial construction and development		1			1
Farmland		815			308
Other loans:
Home equity		811			395
Consumer		73			210
Commercial		159			279
Agricultural		498			177
Accruing loans delinquent 90 days or more
Real estate loans:
Residential 1-4 family		84			48
Commercial real estate		555			-
Farmland		-			841
Other loans:
Commercial		-			10
Agricultural		565			2,645
Total nonperforming loans		4,165			5,632
Real estate owned and other repossessed property, net		70			98
Total nonperforming assets	$	4,235		$	5,730

Total nonperforming loans to total loans		0.27	%		0.37	%
Total nonperforming loans to total assets		0.20	%		0.27	%
Total nonaccrual loans to total loans		0.19	%		0.14	%
Total nonperforming assets to total assets		0.20	%		0.27	%

Nonaccrual loans as of June 30, 2026 and December 31, 2025 include $715,000 and $460,000, respectively of acquired loans that deteriorated subsequent to the acquisition date.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

The following tables include the composition of the commercial real estate loan category:

	June 30, 2026
	Non-Owner Occupied		Owner Occupied		Total		Percent of Total CRE
	(Dollars In Thousands)
Automotive related	$	-	$	23,393	$	23,393		3.42	%
Bars and restaurants		5,162		16,297		21,459		3.14
Car washes		965		-		965		0.14
Construction and related industries		11,091		12,547		23,638		3.45
Healthcare and social assistance		21,504		8,635		30,139		4.40
Hospitality industry related		-		11,344		11,344		1.66
Hotels and other traveler accommodations		86,942		-		86,942		12.70
Industrial/warehouse		58,798		-		58,798		8.59
Lessors of mini warehouses and self-storage units		18,204		-		18,204		2.66
Lessors of nonresidential buildings		71,933		-		71,933		10.51
Lessors of other real estate property		31,962		-		31,962		4.67
Multifamily		113,768		-		113,768		16.63
Office space		18,410		50,030		68,440		10.00
Other real estate rental and leasing		8,306		-		8,306		1.21
Real estate leasing activities		-		30,632		30,632		4.48
Wholesale and retail trade		6,653		11,077		17,730		2.59
Other		40,003		26,725		66,728		9.75
Total commercial real estate	$	493,701	$	190,680	$	684,381		100.00	%

	December 31, 2025
	Non-Owner Occupied		Owner Occupied		Total		Percent of Total CRE
	(Dollars In Thousands)
Automotive related	$	-	$	23,339	$	23,339		3.67	%
Bars and restaurants		5,341		15,803		21,144		3.32
Car washes		979		-		979		0.15
Construction and related industries		17,889		14,227		32,116		5.05
Healthcare and social assistance		9,746		9,016		18,762		2.95
Hospitality industry related		-		11,706		11,706		1.84
Hotels and other traveler accommodations		80,037		-		80,037		12.59
Industrial/warehouse		56,337		-		56,337		8.86
Lessors of mini warehouses and self-storage units		18,926		-		18,926		2.98
Lessors of nonresidential buildings		59,323		-		59,323		9.33
Lessors of other real estate property		29,003		-		29,003		4.56
Multifamily		109,041		-		109,041		17.14
Office space		19,610		44,235		63,845		10.04
Other real estate rental and leasing		2,351		-		2,351		0.37
Real estate leasing activities		-		30,452		30,452		4.79
Wholesale and retail trade		7,140		13,104		20,244		3.18
Other		34,028		24,337		58,365		9.18
Total commercial real estate	$	449,751	$	186,219	$	635,970		100.00	%

Commercial real estate loans made up $684.38 million, or 43.9%, of the Bank's total loan portfolio at June 30, 2026, compared to $635.97 million, or 41.9%, at December 31, 2025. The Bank's commercial real estate loans are primarily permanent loans secured by improved property such as office buildings, retail stores, commercial warehouses, and apartment buildings. The terms and conditions of each loan are tailored to the needs of the borrower and based on the financial strength of the project and any guarantors. Generally, commercial real estate loans originated by the Bank will not exceed 80.0% of the appraised value or the selling price of the property, whichever is less. The Bank's commercial real estate portfolio's average loan-to-value ratio range was 31% to 48% by property type as of June 30, 2026.

The Bank's asset quality with respect to commercial real estate loans has remained strong despite recent economic and market conditions. The Bank has limited exposure in the office space sector, none of which is located in central business districts. Management believes that the Bank has implemented appropriate risk management practices, including regular and ongoing loan reviews, stress tests, and sensitivity analysis. Loan reviews include monitoring past due rates, non-performing trends, concentrations, loan to value ratios, and other qualitative factors. The Bank's loan policy is robust and is updated annually or as needed to meet the risk mitigation and strategic goals of the Bank.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Financial Condition – continued

Deposits and Other Sources of Funds

The following table includes deposit accounts by category:

	June 30,					December 31,
	2026					2025
			Percent					Percent
	Amount		of Total			Amount		of Total
	(Dollars in Thousands)
Noninterest checking	$	448,260		25.05	%	$	452,183		25.38	%
Interest-bearing checking		212,749		11.88			218,484		12.27
Savings		210,389		11.75			207,789		11.66
Money market		451,373		25.21			440,971		24.75
Total		1,322,771		73.89			1,319,427		74.06
Certificates of deposit accounts:
IRA certificates		20,241		1.13			20,926		1.17
Other certificates		447,192		24.98			441,246		24.77
Total certificates of deposit		467,433		26.11			462,172		25.94
Total deposits	$	1,790,204		100.00	%	$	1,781,599		100.00	%

Deposits increased by $8.61 million, or 0.5%, from December 31, 2025 to June 30, 2026. Money market increased by $10.40 million, time certificates of deposit increased by $5.26 million and savings increased by $2.60 million. These increases were partially offset by decreases in interest-bearing checking of $5.73 million and noninterest checking of $3.92 million.

The Bank's estimated amount of uninsured deposits was $359.82 million, or 19.9%, of deposits including accrued interest at June 30, 2026, compared to $354.59 million, or 19.5%, at December 31, 2025.

The following table summarizes borrowing activity:

	June 30,					December 31,
	2026					2025
	Net		Percent			Net		Percent
	Amount		of Total			Amount		of Total
	(Dollars in Thousands)
FHLB advances and other borrowings (including federal funds purchased)	$	52,102		53.93	%	$	38,022		46.10	%
Other long-term debt:
Subordinated debentures fixed at 3.50% to floating, due 2032		39,353		40.73			39,295		47.65
Subordinated debentures variable at 3-Month SOFR plus 1.68%, due 2035		5,155		5.34			5,155		6.25
Total other long-term debt		44,508		46.07			44,450		53.90
Total borrowings	$	96,610		100.00	%	$	82,472		100.00	%

Total borrowings increased by $14.14 million, or 17.1%, to $96.61 million at June 30, 2026 from $82.47 million at December 31, 2025, due to an increase in FHLB advances and other borrowings.

Shareholders’ Equity

Total shareholders’ equity increased by $5.60 million, or 2.9%, to $197.41 million at June 30, 2026 from $191.81 million at December 31, 2025. The increase was primarily attributed to net income of $7.70 million. The increase was partially offset by dividends paid of $2.31 million and other comprehensive loss, net of tax of $462,000.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Analysis of Net Interest Income

The Bank’s earnings have historically depended primarily upon net interest income, which is the difference between interest income earned on loans and investments and interest paid on deposits and any borrowed funds. It is the single largest component of Eagle’s operating income. Net interest income is affected by (i) the difference between rates of interest earned on loans and investments and rates paid on interest-bearing deposits and borrowings (the “interest rate spread”) and (ii) the relative amounts of loans and investments and interest-bearing deposits and borrowings.

The following table includes average balances for financial condition items, as well as interest and dividends and average yields related to the average balances. All average balances are daily average balances. Nonaccrual loans were included in the computation of average balances and reported in loans receivable as loans carrying a zero yield. The yields include the effect of deferred fees and discounts and premiums that are amortized or accreted to interest income or expense.

	Three Months Ended June 30, 2026							Three Months Ended June 30, 2025
	Average		Interest					Average		Interest
	Daily		and		Yield/			Daily		and		Yield/
	Balance		Dividends		Cost⁽⁴⁾			Balance		Dividends		Cost⁽⁴⁾
	(Dollars in Thousands)
Assets:
Interest earning assets:
Investment securities	$	281,816	$	2,297		3.27	%	$	287,707	$	2,397		3.34	%
FHLB and FRB stock		7,509		112		5.98			11,345		236		8.34
Loans receivable⁽¹⁾		1,548,184		24,088		6.24			1,554,756		24,442		6.31
Other earning assets		13,397		114		3.41			8,216		75		3.66
Total interest-earning assets		1,850,906		26,611		5.77			1,862,024		27,150		5.85
Noninterest-earning assets		245,086							250,446
Total assets	$	2,095,992						$	2,112,470

Liabilities and equity:
Interest-bearing liabilities:
Deposit accounts:
Checking	$	213,524	$	83		0.16	%	$	219,867	$	102		0.19	%
Savings		211,010		30		0.06			201,585		31		0.06
Money market		442,674		2,437		2.21			412,716		2,515		2.44
Certificates of deposit		473,867		4,083		3.46			454,719		4,229		3.73
FHLB advances and other borrowings		29,767		393		5.30			125,773		1,459		4.65
Other long-term debt		44,489		447		4.03			59,211		669		4.53
Total interest-bearing liabilities		1,415,331		7,473		2.12			1,473,871		9,005		2.45
Noninterest checking		440,795							417,374
Other noninterest-bearing liabilities		43,611							42,121
Total liabilities		1,899,737							1,933,366

Total equity		196,255							179,104

Total liabilities and equity	$	2,095,992						$	2,112,470
Net interest income/interest rate spread⁽²⁾			$	19,138		3.65	%			$	18,145		3.40	%

Net interest margin⁽³⁾						4.15	%						3.91	%
Total interest earning assets to interest-bearing liabilities						130.78	%						126.34	%

⁽¹⁾Includes loans held-for-sale.

⁽²⁾Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities.

⁽³⁾ Net interest margin represents income before the provision for credit losses divided by average interest-earning assets.

⁽⁴⁾For purposes of this table, tax exempt income is not calculated on a tax equivalent basis.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

	Six Months Ended June 30, 2026							Six Months Ended June 30, 2025
	Average		Interest					Average		Interest
	Daily		and		Yield/			Daily		and		Yield/
	Balance		Dividends		Cost⁽⁴⁾			Balance		Dividends		Cost⁽⁴⁾
	(Dollars in Thousands)
Assets:
Interest earning assets:
Investment securities	$	281,187	$	4,512		3.24	%	$	290,490	$	4,848	3.37		%
FHLB and FRB stock		7,101		250	7.10				11,580		496	8.64
Loans receivable⁽¹⁾		1,536,792		47,658	6.25				1,540,765		47,762	6.25
Other earning assets		23,573		413	3.53				5,782		113	3.94
Total interest-earning assets		1,848,653		52,833	5.76				1,848,617		53,219	5.81
Noninterest-earning assets		245,469							251,363
Total assets	$	2,094,122						$	2,099,980

Liabilities and equity:
Interest-bearing liabilities:
Deposit accounts:
Checking	$	214,976	$	175	0.16		%	$	219,889	$	198	0.18		%
Savings		211,136		60	0.06				202,332		62	0.06
Money market		443,011		4,859		2.21			394,852		4,708	2.40
Certificates of deposit		471,486		8,200	3.51				460,218		8,780	3.85
FHLB advances and other borrowings		30,172		805	5.38				132,302		3,085	4.70
Other long-term debt		44,475		893	4.05				59,192		1,339	4.56
Total interest-bearing liabilities		1,415,256		14,992		2.14			1,468,785		18,172	2.49
Noninterest checking		439,867							411,535
Other noninterest-bearing liabilities		43,195							41,411
Total liabilities		1,898,318							1,921,731

Total equity		195,804							178,249

Total liabilities and equity	$	2,094,122						$	2,099,980
Net interest income/interest rate spread⁽²⁾			$	37,841	3.62		%			$	35,047	3.32		%

Net interest margin⁽³⁾						4.13	%						3.82	%
Total interest earning assets to interest-bearing liabilities						130.62	%						125.86	%

⁽¹⁾Includes loans held-for-sale.

⁽²⁾Interest rate spread represents the difference between the average yield on interest-earning assets and the average rate on interest-bearing liabilities.

⁽³⁾ Net interest margin represents income before the provision for credit losses divided by average interest-earning assets.

⁽⁴⁾For purposes of this table, tax exempt income is not calculated on a tax equivalent basis.

Net Interest Margin ("NIM"). Net interest margin for the three months ended June 30, 2026 was 4.15%, an increase of 24 basis points compared to the three months ended June 30, 2025. Net interest margin for the six months ended June 30, 2026 was 4.13%, an increase of 31 basis points compared to the six months ended June 30, 2025.The increase in NIM reflects lower funding costs and improved balance sheet leverage through a favorable funding mix and reduced borrowings, with stable yields on interest‑earning assets.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Rate/Volume Analysis

The following tables present the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to: (1) changes in volume multiplied by the old rate; (2) changes in rate, which are changes in rate multiplied by the old volume; and (3) changes not solely attributable to rate or volume, which have been allocated proportionately to the change due to volume and the change due to rate.

	Three Months Ended June 30,
	2026									2025
				Due to									Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In Thousands)
Interest earning assets:
Investment securities	$	(49	)	$	(51	)	$	(100	)	$	(159	)	$	(75	)	$	(234	)
FHLB and FRB stock		(80	)		(44	)		(124	)		(38	)		10			(28	)
Loans receivable⁽¹⁾		(103	)		(251	)		(354	)		624			1,036			1,660
Other earning assets		47			(8	)		39			111			(181	)		(70	)
Total interest earning assets		(185	)		(354	)		(539	)		538			790			1,328

Interest-bearing liabilities:
Checking		(3	)		(16	)		(19	)		1			(38	)		(37	)
Savings		1			(2	)		(1	)		(2	)		(1	)		(3	)
Money market		183			(261	)		(78	)		396			(26	)		370
Certificates of deposit		178			(324	)		(146	)		181			(518	)		(337	)
FHLB advances and other borrowings		(1,114	)		48			(1,066	)		(909	)		(257	)		(1,166	)
Other long-term debt		(166	)		(56	)		(222	)		2			(14	)		(12	)
Total interest-bearing liabilities		(921	)		(611	)		(1,532	)		(331	)		(854	)		(1,185	)

Change in net interest income	$	736		$	257		$	993		$	869		$	1,644		$	2,513

	Six Months Ended June 30,
	2026									2025
				Due to									Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In Thousands)
Interest earning assets:
Investment securities	$	(155	)	$	(181	)	$	(336	)	$	(340	)	$	(167	)	$	(507	)
FHLB and FRB stock		(192	)		(54	)		(246	)		(66	)		51			(15	)
Loans receivable⁽¹⁾		(123	)		19			(104	)		1,023			2,015			3,038
Other earning assets		348			(48	)		300			71			(132	)		(61	)
Total interest earning assets		(122	)		(264	)		(386	)		688			1,767			2,455

Interest-bearing liabilities:
Checking		(4	)		(19	)		(23	)		-			13			13
Savings		3			(5	)		(2	)		(5	)		(2	)		(7	)
Money market		574			(423	)		151			623			(85	)		538
Certificates of deposit		215			(795	)		(580	)		443			(671	)		(228	)
FHLB advances and other borrowings		(2,382	)		102			(2,280	)		(1,494	)		(543	)		(2,037	)
Other long-term debt		(333	)		(113	)		(446	)		3			(28	)		(25	)
Total interest-bearing liabilities		(1,927	)		(1,253	)		(3,180	)		(430	)		(1,316	)		(1,746	)

Change in net interest income	$	1,805		$	989		$	2,794		$	1,118		$	3,083		$	4,201

⁽¹⁾Includes loans held-for-sale.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Results of Operations

The following compares the results of operations for the three months ended June 30, 2026 and 2025.

	Three Months Ended
	June 30,
	2026		2025		Dollar Change			Percent Change
	(Dollars in Thousands)
Interest and dividend income	$	26,611	$	27,150	$	(539	)		-2.0	%
Interest expense		7,473		9,005		(1,532	)		-17.0
Net interest income		19,138		18,145		993			5.5
Provision for credit losses		343		1,038		(695	)		-67.0
Net interest income after provision for credit losses		18,795		17,107		1,688			9.9

Noninterest income		5,017		4,807		210			4.4
Noninterest expense		18,992		17,926		1,066			5.9
Provision for income taxes		1,105		751		354			47.1
Net income	$	3,715	$	3,237	$	478			14.8	%

Net Income. Eagle’s net income for the three months ended June 30, 2026, was $3.72 million, compared to $3.24 million for the three months ended June 30, 2025. The increase of $478,000 was due to an increase in net interest income after provision for credit losses of $1.69 million and an increase in noninterest income of $210,000. These changes were partially offset by an increase in noninterest expense of $1.07 million and an increase in the provision for income taxes of $354,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.47. Basic and diluted earnings per common share were $0.42 and $0.41 for the three months ended June 30, 2025, respectively.

Net Interest Income. Net interest income increased to $19.14 million for the three months ended June 30, 2026, from $18.15 million for the three months ended June 30, 2025. The increase of $993,000, or 5.5%, was primarily the result of a decrease in interest expense of $1.53 million, partially offset by a decrease in interest and dividend income of $539,000.

Interest and Dividend Income. Interest and dividend income was $26.61 million for the three months ended June 30, 2026, compared to $27.15 million for the three months ended June 30, 2025, a decrease of $539,000, or 2.0%. Interest and fees on loans decreased slightly to $24.09 million for the three months ended June 30, 2026, from $24.44 million for the three months ended June 30, 2025. This decrease of $354,000, or 1.4%, was largely due to a decrease in the average yield on loans, as well as marginally lower average loan balances period over period. The average interest rate earned on loans receivable decreased by seven basis points, from 6.31% for the three months ended June 30, 2025, to 6.24% for the current period. Interest accretion on purchased loans was $94,000 for the three months ended June 30, 2026, which resulted in a two-basis point increase in net interest margin compared to $607,000 for the three months ended June 30, 2025, which resulted in a 13-basis point increase in net interest margin. Average balances for loans receivable, including loans held-for-sale, remained relatively stable at $1.55 billion for the three months ended June 30, 2026 and 2025.

Interest Expense. Total interest expense was $7.47 million for the three months ended June 30, 2026, decreasing from $9.01 million for the three months ended June 30, 2025. The decrease of $1.53 million, or 17.0%, was primarily due to a decrease of $1.29 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $184.98 million for the three months ended June 30, 2025, to $74.26 million for the three months ended June 30, 2026. The average rate paid also decreased from 4.61% for the three months ended June 30, 2025, to 4.54% for the three months ended June 30, 2026. Interest expense on deposits decreased by $244,000, period over period. The average balance for total deposits increased from $1.71 billion for the three months ended June 30, 2025, to $1.78 billion for the three months ended June 30, 2026. However, the overall rate on total deposits was down from 1.62% for the three months ended June 30, 2025, compared to 1.49% for the three months ended June 30, 2026.

Provision for Credit Losses. Provision for credit losses was $343,000 for the three months ended June 30, 2026, compared to $1.04 million the three months ended June 30, 2025. The provision for credit losses for the three months ended June 30, 2026, included the provision for credit losses on loans of $403,000 and a recapture of the provision for unfunded commitments of $60,000. The higher provision for 2025 was largely due to loan growth.

Noninterest Income. Total noninterest income was $5.02 million for the three months ended June 30, 2026, compared to $4.81 million for the three months ended June 30, 2025, an increase of $210,000, or 4.4%. This increase was primarily due to an increase of $135,000 in other noninterest income.

Noninterest Expense. Noninterest expense was $18.99 million for the three months ended June 30, 2026, compared to $17.93 million for the three months ended June 30, 2025, an increase of $1.07 million, or 5.9%. The driver of the increase was salaries and employee benefits, which increased $1.06 million. The largest components of the increase period over period were health insurance expense, which increased $521,000, and salaries expense, which increased $309,000.

Provision for Income Taxes. Provision for income taxes was $1.11 million for the three months ended June 30, 2026, compared to $751,000 for the three months ended June 30, 2025. The effective tax rate was 22.9% for the current period compared to 18.8% for the three months ended June 30, 2025. The effective tax rate has increased as the Company’s pretax earnings increased at a faster pace than tax-exempt income.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

The following compares the results of operations for the six months ended June 30, 2026 and 2025.

	Six Months Ended
	June 30,
	2026		2025		Dollar Change			Percent Change
	(Dollars in Thousands)
Interest and dividend income	$	52,833	$	53,219	$	(386	)		-0.7	%
Interest expense		14,992		18,172		(3,180	)		-17.5
Net interest income		37,841		35,047		2,794			8.0
Provision for credit losses		622		1,080		(458	)		-42.4
Net interest income after provision for credit losses		37,219		33,967		3,252			9.6

Noninterest income		9,898		8,823		1,075			12.2
Noninterest expense		37,203		34,932		2,271			6.5
Provision for income taxes		2,215		1,382		833			60.3
Net income	$	7,699	$	6,476	$	1,223			18.9	%

Net Income. Eagle’s net income for the six months ended June 30, 2026, was $7.70 million, compared to $6.48 million for the six months ended June 30, 2025. The increase of $1.22 million was due to an increase in net interest income after provision for credit losses of $3.25 million and an increase in noninterest income of $1.08 million. These changes were partially offset by an increase in noninterest expense of $2.27 million and an increase in the provision for income taxes of $833,000. For the current period, basic earnings per common share and diluted earnings per common share were both $0.98. Basic earnings per common share and diluted earnings per common share were both $0.83 for the six months ended June 30, 2025.

Net Interest Income. Net interest income increased to $37.84 million for the six months ended June 30, 2026, from $35.05 million for the six months ended June 30, 2025. The increase of $2.79 million, or 8.0%, was primarily the result of a decrease in interest expense of $3.18 million.

Interest and Dividend Income. Interest and dividend income was $52.83 million for the six months ended June 30, 2026, compared to $53.22 million for the six months ended June 30, 2025, a slight decrease of $386,000, or 0.7%. Interest from investment securities available-for-sale decreased by $336,000, or 6.9%, period over period, due to a decrease in average balances for investments from $290.49 million for the six months ended June 30, 2025, to $281.19 million for the six months ended June 30, 2026. In addition, average interest rates earned on investments decreased from 3.37% for the six months ended June 30, 2025, to 3.24% for the six months ended June 30, 2026. Interest and fees on loans decreased minimally to $47.66 million for the six months ended June 30, 2026, compared to $47.76 million for the six months ended June 30, 2025. Average loan balances and interest rates remain relatively consistent, period over period.

Interest Expense. Total interest expense was $14.99 million for the six months ended June 30, 2026, decreasing from $18.17 million for the six months ended June 30, 2025. The decrease of $3.18 million, or 17.5%, was primarily due to a decrease of $2.73 million in interest expense on total borrowings. The decrease in interest expense on total borrowings was driven by the average balance decreasing from $191.49 million for the six months ended June 30, 2025, to $74.65 million for the six months ended June 30, 2026. The average rate paid also decreased from 4.66% for the six months ended June 30, 2025, to 4.59% for the six months ended June 30, 2026. Interest expense on deposits decreased by $454,000, period over period. The average balance for total deposits increased from $1.69 billion for the six months ended June 30, 2025, to $1.78 billion for the six months ended June 30, 2026. However, the overall average rate on total deposits was down from 1.64% for the six months ended June 30, 2025, compared to 1.51% for the six months ended June 30, 2026.

Provision for Credit Losses. Provision for credit losses was $622,000 for the six months ended June 30, 2026, compared to $1.08 million for the six months ended June 30, 2025. The provision for credit losses for the six months ended June 30, 2026, included the provision for credit losses on loans of $512,000 and the provision for unfunded commitments of $110,000. The higher provision for 2025 was largely due to loan growth.

Noninterest Income. Total noninterest income was $9.90 million for the six months ended June 30, 2026, compared to $8.82 million for the six months ended June 30, 2025, an increase of $1.08 million, or 12.2%. This increase was largely due to an increase of $625,000 in other noninterest income for insurance proceeds of $488,000 received for the six months ended June 30, 2026, primarily related to smoke damage caused by a furnace fire and other damage from a windstorm. In addition, mortgage banking, net increased $303,000 to $5.35 million for the six months ended June 30, 2026, from $5.05 million for the six months ended June 30, 2025. Mortgage banking, net, includes net gain on sale of mortgage loans, which increased to $3.90 million for the six months ended June 30, 2026, compared to $3.43 million for the six months ended June 30, 2025. During the six months ended June 30, 2026, $138.59 million residential mortgage loans were sold, compared to $97.40 million in the six months ended June 30, 2025. However, gross margin levels decreased from 3.52% for the six months ended June 30, 2025, to 2.82% for the six months ended June 30, 2026.

Noninterest Expense. Noninterest expense was $37.20 million for the six months ended June 30, 2026, compared to $34.93 million for the six months ended June 30, 2025, an increase of $2.27 million, or 6.5%. The driver of the increase was salaries and employee benefits, which increased $2.22 million. The largest components of the increase period over period were health insurance expense, which increased $777,000, and commission expense, which increased $545,000 due to higher mortgage origination volumes.

Provision for Income Taxes. Provision for income taxes was $2.22 million for the six months ended June 30, 2026, compared to $1.38 million for the six months ended June 30, 2025. The effective tax rate was 22.3% for the current period compared to 17.6% for the six months ended June 30, 2025. The effective tax rate has increased as the Company’s pretax earnings increased at a faster pace than tax-exempt income.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Liquidity and Capital Resources

Liquidity

The Bank is required by regulation to maintain sufficient levels of liquidity for safety and soundness purposes. Appropriate levels of liquidity will depend upon the types of activities in which the company engages. For internal reporting purposes, the Bank uses policy minimums of 1.0% and 8.0% for “basic surplus” and “basic surplus with FHLB” as internally defined. In general, the “basic surplus” is a calculation of the ratio of unencumbered short-term assets reduced by estimated percentages of CD maturities and other deposits that may leave the Bank in the next 30 days divided by total assets. “Basic surplus with FHLB” adds to “basic surplus” the additional borrowing capacity the Bank has with the FHLB of Des Moines. The Bank exceeded those minimum ratios as of June 30, 2026 and December 31, 2025.

The Bank’s primary sources of funds are deposits, repayment of loans and mortgage-backed securities, maturities of investments, funds provided from operations, advances from the FHLB of Des Moines and other borrowings. Scheduled repayments of loans and mortgage-backed securities and maturities of investment securities are generally predictable. However, other sources of funds, such as deposit flows and loan prepayments, can be greatly influenced by the general level of interest rates, economic conditions and competition. The Company uses liquidity resources principally to fund existing and future loan commitments. It also uses them to fund maturing certificates of deposit and demand deposit withdrawals, for investment purposes, to meet operating expenses and capital expenditures, for dividend payments, for stock repurchases and to maintain adequate liquidity levels.

Liquidity may be adversely affected by unexpected deposit outflows, higher interest rates paid by competitors, and similar matters. Management monitors projected liquidity needs and determines the level desirable based in part on the Bank's commitments to make loans and management’s assessment of the Bank's ability to generate funds.

The Company's available borrowing capacity was approximately $575.00 million as of June 30, 2026 and $601.00 million as of December 31, 2025.

	June 30,				December 31,
	2026				2025
	Borrowings		Remaining Borrowing		Borrowings		Remaining Borrowing
	Outstanding		Capacity		Outstanding		Capacity
	(In Thousands)
Federal Home Loan Bank advances	$	39,102	$	466,771	$	22,917	$	492,553
Federal Reserve Bank discount window		-		21,192		-		23,506
Correspondent bank lines of credit and federal funds purchased		13,000		87,000		15,105		84,895
Total	$	52,102	$	574,963	$	38,022	$	600,954

Brokered deposits are another source of funding the Bank may utilize from time to time. As of June 30, 2026, the Bank had no brokered certificates and $6,000 in brokered money market deposits. As of December 31, 2025, the Bank had no brokered certificates and $3.21 million in brokered money market deposits. Internal policy limits for brokered deposits are set at 10% of assets.

In addition to bank level liquidity management, Eagle must manage liquidity at the parent company level for various operating needs, including the servicing of debt, the payment of dividends on our common stock, share repurchases, payment of general corporate expenses, and potential capital infusions into subsidiaries. The primary source of liquidity for Eagle consists of dividends from the Bank, which is governed by certain rules and regulations of the Montana Division of Banking and Financial Institutions and the Federal Reserve, and access to capital markets.

Eagle has a $15.00 million line of credit with a correspondent bank. The line of credit was utilized during 2025 to finance the redemption payment for subordinated notes of $15.00 million. The line of credit has a two-year maturity and a variable interest rate equal to 0.50% below prime. The outstanding balance for the line of credit was $13.00 million and $15.00 million at June 30, 2026 and December 31, 2025, respectively. The rate was 6.25% as of both June 30, 2026 and December 31, 2025. Draws on the line of credit are secured by the assets of the Company and includes certain financial covenants and negative covenants. The Company is in compliance with the covenants under the line of credit. Outstanding draws on the line impact remaining borrowing capacity for the Company’s correspondent bank lines of credit included above.

Eagle presently believes that the sources of liquidity discussed above, including existing liquid funds on hand, are sufficient to meet its anticipated funding needs in the short and long term. However, if economic conditions were to significantly deteriorate, regulatory capital requirements for Eagle or the Bank were to increase as the result of regulatory directives or otherwise, or Eagle were to believe it is prudent to enhance current liquidity levels, then Eagle may seek additional liquidity from external sources.

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Table of Contents

EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Capital Resources

As of June 30, 2026, the Bank’s internally determined measurement of sensitivity to interest rate movements, as measured by a 200-basis point rise in interest rates scenario, increased the economic value of equity (“EVE”) by 2.7%, compared to an increase of 3.4% at December 31, 2025. A 200-basis point decrease in interest rates scenario decreased EVE by 8.8%, compared to a decrease of 9.3% at December 31, 2025. The Bank is within the guidelines set forth by the Board of Directors for interest rate risk sensitivity in rising interest rate scenarios.

The Bank's regulatory capital was in excess of all applicable regulatory requirements and the Bank is deemed "well capitalized" pursuant to State of Montana and FRB rules as of June 30, 2026. The Bank's actual capital amounts and ratios as of June 30, 2026 are presented in the table below and all of the ratios, with the exception of the Tier 1 capital adjusted total average assets ratio, include the capital conservation buffer of 2.50%.

											Minimum
											To Be Well
						Minimum Required					Capitalized Under
						for Capital Adequacy					Prompt Corrective
	Actual					Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
June 30, 2026:
Total risk-based capital to risk weighted assets	$	246,587		14.23	%	$	181,908		10.50	%	$	173,246		10.00	%

Tier 1 capital to risk weighted assets		226,997		13.10			147,259		8.50			138,597		8.00

Common equity Tier 1 capital to risk weighted assets		226,997		13.10			121,272		7.00			112,610		6.50

Tier 1 capital to adjusted total average assets		226,997		10.93			83,085		4.00			103,856		5.00

The Bank's regulatory capital was in excess of all applicable regulatory requirements and the Bank is deemed "well capitalized" pursuant to State of Montana and FRB rules as of December 31, 2025. The Bank's actual capital amounts and ratios as of December 31, 2025 are presented in the table below and all of the ratios, with the exception of the Tier 1 capital adjusted total average assets ratio, include the capital conservation buffer of 2.50%.

											Minimum
											To Be Well
						Minimum Required					Capitalized Under
						for Capital Adequacy					Prompt Corrective
	Actual					Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in Thousands)
December 31, 2025:
Total risk-based capital to risk weighted assets	$	241,786		14.28	%	$	177,739		10.50	%	$	169,275		10.00	%

Tier 1 capital to risk weighted assets		222,576		13.15			143,884		8.50			135,420		8.00

Common equity Tier 1 capital to risk weighted assets		222,576		13.15			118,492		7.00			110,029		6.50

Tier 1 capital to adjusted total average assets		222,576		10.62			83,832		4.00			104,790		5.00

Impact of Inflation and Changing Prices

Our condensed consolidated financial statements and the accompanying notes, which are found in Part I, Item 1, have been prepared in accordance with generally accepted accounting principles, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time and due to inflation. The impact of inflation is reflected in the increased cost of our operations. Interest rates have a greater impact on our performance than do the general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Interest Rate Risk

Interest rate risk is the potential for loss of future earnings resulting from adverse changes in the level of interest rates. Interest rate risk results from several factors and could have a significant impact on the Company’s net interest income, which is the Company's primary source of revenue. Net interest income is affected by changes in interest rates, the relationship between rates on interest-bearing assets and liabilities, the impact of interest rate fluctuations on asset prepayments and the mix of interest-bearing assets and liabilities.

Although interest rate risk is inherent in the banking industry, banks are expected to have sound risk management practices in place to measure, monitor and control interest rate exposures. The objective of interest rate risk management is to contain the risks associated with interest rate fluctuations. The process involves identification and management of the sensitivity of net interest income to changing interest rates.

The ongoing monitoring and management of this risk is an important component of the Company’s asset/liability committee, which is governed by policies established by the Company’s Board that are reviewed and approved annually. The Board delegates responsibility for carrying out the asset/liability management policies to the Bank’s asset/liability committee. In this capacity, the asset/liability committee develops guidelines and strategies impacting the Company’s asset/liability management related activities based upon estimated market risk sensitivity, policy limits and overall market interest rate levels and trends. The Company’s goal of its asset and liability management practices is to maintain or increase the level of net interest income within an acceptable level of interest rate risk.

The Bank has established acceptable levels of interest rate risk as follows for an instantaneous and permanent shock in rates: projected net interest income over the next twelve months (i.e. year-1) will not be reduced by more than 15.0% given an immediate increase or decrease in interest rates of up to 300 basis points, and the subsequent twelve months (i.e. year-2) will not be reduced by more than 20.0% given an immediate increase or decrease in interest rates of up to 300 basis points.

The following table includes the Bank’s net interest income sensitivity analysis.

Changes in Market	As of June 30, 2026		Board Policy	Board Policy
Interest Rates	Rate Sensitivity		Limits	Limits
(Basis Points)	Year 1	Year 2	Year 1	Year 2

+300	-4.5%	7.2%	-15.0%	-20.0%
+200	-2.8%	6.1%	-15.0%	-15.0%
+100	-1.2%	5.1%	-10.0%	-10.0%
-100	0.3%	-0.2%	-10.0%	-10.0%
-200	1.1%	-3.7%	-15.0%	-15.0%
-300	3.1%	-5.5%	-15.0%	-20.0%

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. It is management's practice to discuss critical accounting policies with the Board of Directors' Audit Committee on a periodic basis, including the development, selection, implementation, and disclosure of the critical accounting policies. The application of these policies has a significant impact on Eagle’s unaudited interim consolidated financial statements. Eagle’s financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 – Organization and Summary of Significant Accounting Policies" in Eagle’s 2025 Form 10-K, as filed with the SEC on March 9, 2026, should be reviewed for a greater understanding of how we record and report our financial performance. There have been no significant changes to the accounting policies, estimates, and assumptions, or the judgments affecting the application of these estimates and assumptions from those disclosed in Eagle’s 2025 Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

This item has been omitted based on Eagle’s status as a smaller reporting company.

Item 4. Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation under the supervision and with the participation of our management including our Chief Executive Officer (“CEO”) and our Chief Financial Officer (“CFO”) of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to management to allow timely decisions regarding required disclosure. Based on that evaluation, our CEO and CFO concluded that as of June 30, 2026, our disclosure controls and procedures were effective. During the last quarter, there were no changes in the Company’s internal control over financial reporting that have materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

Part II - OTHER INFORMATION

Item 1.

Legal Proceedings.

Neither the Company nor the Bank is involved in any pending legal proceeding other than non-material legal proceedings occurring in the ordinary course of business.

Item 1A.

Risk Factors

There have not been any material changes in the risk factors previously disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

On April 23, 2026, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2026 (the "2026 Repurchase Plan"). Under the 2026 Repurchase 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 on market conditions and other corporate considerations. No shares were purchased during the second quarter of 2026 under this plan. The plan expires on May 1, 2027.

On April 24, 2025, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2025 (the "2025 Repurchase Plan"). Under the 2025 Repurchase Plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. No shares were purchased during the second or third quarter of 2025 under this plan. During the fourth quarter of 2025, 25,000 shares were purchased under this plan at an average price of $16.38 per share. No shares were purchased during the first or second quarter of 2026 under this plan. The plan expired on May 1, 2026.

On April 18, 2024, Eagle's Board of Directors authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2024 (the "2024 Repurchase Plan"). Under the 2024 Repurchase Plan, shares may be purchased by the Company on the open market or in privately negotiated transactions. No shares were purchased during the second or third quarter of 2024 under this plan. During the fourth quarter of 2024, 25,000 shares were purchased under this plan at an average price of $16.74 per share. During the first quarter of 2025, 50,000 shares were purchased under this plan at an average price of $15.11 per share. During the second quarter of 2025, 25,000 shares were purchased under this plan at an average price of $16.34 per share. The plan expired on May 1, 2025.

Item 3.

Defaults Upon Senior Securities.

Not applicable.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information.

During the three months ended June 30, 2026, none of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

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

Part II - OTHER INFORMATION - continued

Item 6.

Exhibits.

Exhibit Number	Description

3.1	Amended and Restated Certificate of Incorporation of Eagle Bancorp Montana, Inc. (incorporated by reference to Exhibit 3.1 of our Current Report on Form 8-K filed on February 23, 2010).

3.2	Certificate of Amendment to the Amended and Restated Certificate of Incorporation. (incorporated by reference to Exhibit 3.2 of our Quarterly Report on Form 10-Q filed on May 9, 2019).

3.3	Bylaws of Eagle Bancorp Montana, Inc., amended as of August 20, 2015 (incorporated by reference to 3.1 of our Current Report on Form 8-K filed on August 25, 2015).

31.1	Certification by Laura F. Clark, Chief Executive Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 (a) of the Sarbanes-Oxley Act of 2002.

31.2	Certification by Miranda J. Spaulding, Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 (a) of the Sarbanes-Oxley Act of 2002.

32.1	Certification by Laura F. Clark, Chief Executive Officer, and Miranda J. Spaulding, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)⁽¹⁾

101.SCH	Inline XBRL Taxonomy Extension Schema Document⁽¹⁾

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document⁽¹⁾

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document⁽¹⁾

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document⁽¹⁾

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document⁽¹⁾

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

⁽¹⁾ These interactive data files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

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EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	EAGLE BANCORP MONTANA, INC.

Date: August 5, 2026	By:	/s/ Laura F. Clark
		Laura F. Clark
		CEO



Date: August 5, 2026	By:	/s/ Miranda J. Spaulding
		Miranda J. Spaulding
		EVP/CFO

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