What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-09 compared with 2025-03-14 · 130 added, 113 removed, 540 unchanged (31% of the section changed)

15 unchanged sentences

Net interest income and noninterest income are offset by provisions for credit losses, general administrative and other expenses, including salaries and employee benefits and occupancy and equipment costs, as well as by state and federal income tax expense.

The Bank has a strong mortgage lending focus, with a large portion of its loan originations represented by single-family residential mortgages, which has enabled it to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.).

The Bank has a strong mortgage lending focus, with a large portion of its loan originations repres ented by single-family residential mortgages, which has enabled it to successfully market home equity loans, as well as a wide range of shorter-term consumer loans for various personal needs (automobiles, recreational vehicles, etc.).

The Bank has also focused on adding commercial loans to our portfolio, both real estate and non-real estate.

1 unchanged sentence

As of December 31, 2025 , commercial real estate loans represented 60.5% of the total loan portfolio, including farmland loans representing 10.7% of the total loan portfolio.

Commercial business loans represented 18.3% of the total loan portfolio, including agricultural loans representing 8.8% of the total loan portfolio.

Commercial business loans represented 18.7% of the total loan portfolio, including agricultural loans representing 8.9% of t he total loan portfolio.

The purpose of this diversification is to mitigate our dependence on the residential mortgage market, as well as to improve our ability to manage our interest rate spread.

Recent acquisitions have added to our agricultural loans, which generally have shorter maturities and nominally higher interest rates.

This has provided additional interest income and improved interest rate sensitivity.

This has provided additional in terest income and improved interest rate sensitivity.

The Bank’s management recognizes that fee income will also enable it to be less dependent on specialized lending and it maintains a significant loan serviced portfolio, which provides a steady source of fee income.

17 unchanged sentences

The level and movement of interest rates impacts the Bank’s earnings as well.

The Federal Open Market Committee increased the federal funds target rate to 5.50% during the year ended December 31, 2023.

The Federal Open Market Committee decreased the federal funds target rate to 4.50% during the year ended December 31, 2024.

The rate decreased to 3.75% during the year ended December 31, 2025.

15 unchanged sentences

The allowance is based on information known at the time of the review.

Changes in factors underlying the assessment for subsequent evaluations of the loan portfolio could have a material impact on the amount of the allowance that is necessary and the amount of provision to be charged against earnings.

Changes in factors underlying the assessment for subsequent evaluations of the loan portfolio could have a material impact on the amount of the allowance that is necessary to increase the amount of provision to be charged against earnings.

See Note 3 to the Consolidated Financial Statements in “Item 8.

13 unchanged sentences

The interim goodwill impairment assessment as of August 31, 2024 concluded that goodwill was not impaired.

No interim goodwill impairment tests were performed in 2025.

Our quantitative annual impairment tests as of October 31, 2025 and 2024 also did not result in impairment.

2 unchanged sentences

Management will continue to monitor events that could influence this conclusion in the future.

See Note 7 to the Consolidated Financial Statements in “Item 8.

Financial Statements and Supplementary Data” for further information.

The Company's accounting policies and discussion of recent accounting pronouncements is included in Note 1 to the Consolidated Financial Statements in "Item 8.

3 unchanged sentences

Total assets were $2.11 billion at December 31, 2025, an increase of $3.28 million or 0.2% from $2.10 billion at December 31, 2024.

L oans receivable, n et increased by $ 35.75 million or 2.4% , to $ 1.50 b illion at December 31, 2024 from $1.47 billion at December 31, 2023.

However, securities available-for -sale decreased by $ 25.69 million or 8.1% fro m December 31, 2023.

Securities available-for-sale decreased by $10.90 million or 3.7% from December 31, 2024.

Loans receivable, net decreased by $2.15 million or 0.1%, to $1.50 billion at December 31, 2025 from $1.50 billion at December 31, 2024.

Total liabilities were $1.91 billion at December 31, 2025, a decrease of $13.78 million, or 0.7%, from $1.93 billion at December 31, 2024.

Total deposits increased by $100.37 million or 6.0% to $1.78 billion from $1.68 billion at December 31, 2024.

Total borrowings decreased $117.61 million to $82.47 million at December 31, 2025, from $200.08 million at December 31, 2024.

Total liabilities were $1.93 billion at December 31, 2024, an increase of $21.94 million, or 1.2%, from $1.91 billion at December 31, 2023.

Total deposit s increased by $46.03 million or 2.8% to $1.68 billion from $1.64 billion at December 31, 2023.

Total shareholders’ equ ity increased by $5.50 million or 3.2% from December 31, 2023.

Total shareholders’ equity increased by $17.04 million or 9.7% from December 31, 2024.

Financial Condition Details

8 unchanged sentences

FHLB stock was $2.65 million and $7.78 million at December 31, 2025 and 2024, respectively.

FRB stock was $4.13 million for both at December 31, 2024 and 2023.

FRB stock was $4.13 million at December 31, 2025 and 2024.

The following table summarizes investment activities:

Percentage of Total

Percent of Total

(Dollars in Thousands)

9 unchanged sentences

Securities available-for-sale were $281.69 million at December 31, 2025, a decrease o f $10.90 million, or 3.7%, from $292.59 million at December 31, 2024.

The decrease was due to sales of $14.12 million and maturity, principal payments and call activity of $21.45 million.

These decreases were partially offset by $10.98 million in investment purchases.

In addition, unrealized losses on securities increased from prior year by $273,000.

The following table sets forth information regarding fair values, weighted average yields and maturities of investments.

The decrease was primarily due to maturity, principal payments and call activity of $27.12 million partially offset by $7.04 million in investment purchases and an increase in fair value of $9.88 million.

The following table sets forth information regarding amortized costs, fair values, weighted average yields and maturities of investments.

The yields have been computed on a tax equivalent basis.

2 unchanged sentences

One Year or Less

One to Five Years

Five to Ten Years

After One Year to Five Years

After Five Years to Ten Years

After Ten Years

Total Investment Securities

Amortized Cost

Weighted Average Yield

Amortized Cost

Weighted Average Yield

Amortized Cost

Weighted Average Yield

Amortized Cost

Weighted Average Yield

Amortized Cost

Approximate Market Value

Weighted Average Yield

(Dollars in Thousands)

26 unchanged sentences

Total other loans

Deferred loan fees (2)

Deferred loan fees, net (2)

Allowance for credit losses (3)

4 unchanged sentences

allowance for loan losses for the years ended December 31, 2022 and 2021.

Loans receivable, net increased $35.75 million, or 2.4%, to $1.50 billion at December 31, 2024 from $1.47 billion at December 31, 2023.

Total commercial loans increased $20.38 million, total home equity loans increased $10.61 million, and total commercial real estate loans increased $7.37 million.

These increases were slightly offset by decreases in consumer loans of $1.62 million and residential loans of $590,000.

Loans receivable, net decreased $2.15 million, or 0.1%, to $1.50 billion at December 31, 2025 from $1.50 billion at December 31, 2024.

Total residential loans decreased $15.63 million, and consumer loans decreased $4.09 million.

These decreases were largely offset by increases in home equity loans of $10.53 million, total commercial loans of $5.50 million and total commercial real estate loans of $2.06 million.

Total loan originations were $614.74 million for the year ended December 31, 2025 .

4 unchanged sentences

Consumer loan originations totaled $12.57 million.

Loans held-for-sale increased by $1.94 million, to $13.37 million at December 31, 2024 from $11.43 million at December 31, 2023 .

Loans held-for-sale decreased by $5.92 million, to $7.45 million at December 31, 2025 from $13.37 million at December 31, 2024 .

The following table includes the composition of the commercial real estate loan category:

December 31, 2025

(In Thousands)

Non-Owner Occupied

1 unchanged sentence

Percent of Total CRE

(Dollars In Thousands)

Automotive related

13 unchanged sentences

December 31, 2024

(In Thousands)

Non-Owner Occupied

1 unchanged sentence

Percent of Total CRE

(Dollars In Thousands)

Automotive related

24 unchanged sentences

The following table sets forth the estimated maturity of the loan portfolio of the Bank at December 31, 2025.

Balances exclude deferred loan fees and allowance for credit losses.

Balances exclude allowance for credit losses.

Scheduled principal repayments of loans do not necessarily reflect the actual life of such assets.

7 unchanged sentences

After Fifteen Years

(In Thousands)

Total residential 1-4 family (1)

18 unchanged sentences

90 Days and Greater

Percentage of Total

Percent of Total

(Dollars in Thousands)

16 unchanged sentences

Residential 1-4 family

Residential 1-4 family construction

Restructured loans

7 unchanged sentences

Nonaccrual loans as of December 31, 2025 and 2024 inclu de $460,000 and $591,000, respectively, of acquired loans that deteriorated subsequent to the acquisition date.

During the year ended December 31, 2025 , the Bank sold four real estate owned and other repossessed assets resulting in a net loss of $10,000.

There were no subsequent write-downs on real estate owned or other repossessed assets during the year ended December 31, 2025 .

During the year ended December 31, 2024 , the Bank sold two real estate owned and other repossessed assets resulting in a net loss of $6,000.

There were no subsequent write-downs on real estate owned or other repossessed assets during the year ended December 31, 2024 .

During the year ended December 31, 2023, the Bank sold one real estate owned and other repossessed asset.

There were no subsequent write-up on real estate owned and other repossessed assets during the year ended December 31, 2023.

Management, in compliance with regulatory guidelines, conducts an internal loan review program, whereby loans are placed or classified in categories depending upon the level of risk of nonpayment or loss.

15 unchanged sentences

Commercial construction and development

Real estate owned/repossessed property, net

Real estate owned and other repossessed property, net

December 31, 2024

5 unchanged sentences

Commercial construction and development

Real estate owned/repossessed property, net

Real estate owned and other repossessed property, net

Allowance for Credit Losses .

20 unchanged sentences

At December 31, 2025, w e had $17.37 mil lion in allowance for credit losses.

At December 31, 2023 , we had $16.44 million in allowance for loan losses.

At December 31, 2024 , we had $16.85 million in allowance for credit losses.

While we believe we have established our existing allowance for credit losses in accordance with generally accepted accounting principles, there can be no assurance that bank regulators, in reviewing our loan portfolio, will not request that we significantly increase our allowance for credit losses, or that general economic conditions, a deteriorating real estate market, or other factors will not cause us to significantly increase our allowance for credit losses, therefore negatively affecting our financial condition and earnings.

14 unchanged sentences

Allowance for credit losses to total nonperforming loans

Allowance for credit losses to nonaccrual loans

Net charge-offs (recoveries) to average loans outstanding during the period

Net charge-offs to average loans outstanding for each loan category are considered insignificant for the periods presented in the table above.

Allowance for credit losses to nonaccrual loans with no allowance for credit losses

Net loan (charge-offs) recoveries to average loans outstanding during the period including loans held-for-sale

Net loan charge-offs for each loan category to average loans outstanding during the period including loans held-for-sale are considered insignificant for the periods presented in the table above.

The following table presents allocation of the allowance for credit losses by loan category and the percentage of loans in each category to total loans:

Percentage of Allowance to Total Allowance

Percent of Allowance to Total Allowance

Loan Category to Total Loans

Percentage of Allowance to Total Allowance

Percent of Allowance to Total Allowance

Loan Category to Total Loans

Percentage of Allowance to Total Allowance

Percent of Allowance to Total Allowance

Loan Category to Total Loans

11 unchanged sentences

Based on our historical experience, we include IRA accounts funded by certificates of deposit as core deposits because they exhibit the principal features of core deposits in that they are stable and generally are not rate sensitive.

Core deposits were $1.24 billion or 73.7% of the Bank’s total deposits at December 31, 2024 ($1.22 billion or 72.5% excluding IRA certificates of deposit).

The presence of a high percentage of core deposits and, in particular, transaction accounts reflects in part due to our strategy to restructure our liabilities to more closely resemble the lower cost of liabilities of a commercial bank.

However, a significant portion of our deposits is in certificate of deposit form and there was growth in this area during 2024.

This shift to certificate of deposits has added to our overall cost of funds and could continue to in the future.

Core deposits were $1.34 billion or 75.2% of the Bank’s total deposits at December 31, 2025.

The high percentage of core deposits, particularly transaction accounts, continues to reflect our strategy to restructure our liabilities to more closely align with the lower‑cost funding profile of a commercial bank.

Although a meaningful portion of our funding remains in certificates of deposit, balances in this category slightly decreased during 2025.

This modest decline has eased some pressure on our overall cost of funds;

however, certificates of deposit still represent a higher‑cost funding source and could continue to influence our cost structure going forward.

The following table includes deposit accounts and associated weighted average interest rates for each category of deposits:

9 unchanged sentences

Overall deposits increased year over year by $100.37 million.

Certificates of deposits increased $18.49 million while savings decreased by $20.14 million.

All other categories of deposits increased as follows:

money market increased by $36.82 million, interest-bearing checking increased $10.38 million, and noninterest checking increased by $484,000.

There was migration during the year from lower yielding deposit accounts to certificates of deposit as consumers shifted funds to higher yielding deposits.

Money markets increased $73.88 million and noninterest checking increased $32.97 million The remaining deposit accounts experienced slight decreases:

Interest bearing checking decreased $2.99 million, savings decreased $2.78 million and money time certificates of deposit decreased $703,000.

At December 31, 2025 and 2024, the Company held $734.62 million and $632.95 million, respectively, in deposit accounts that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") requirements of $250,000 and greater.

11 unchanged sentences

Eagle has a line of credit with Bell Bank.

Advances from FHLB and other borrowings decreased by $34.81 million to $140.93 million at December 31, 2024 from $175.74 million at December 31, 2023.

Advances from FHLB and other borrowings, including federal funds purchased, decreased by $102.9 million to $38.03 million at December 31, 2025 from $140.93 million at December 31, 2024.

The decrease was related to an increase in deposits.

The weighted average rate for borrowings was 4.72% as of December 31, 2024, compared to 5.48% at December 31, 2023.

The weighted average rate for borrowings was 5.24% at December 31, 2025, compared to 4.72% at December 31, 2024.

The outstanding balance under the Bell Bank line of credit was $15.00 million at December 31, 2025.

Other Long-Term Debt.

1 unchanged sentence

(Dollars in Thousands)

Subordinated debentures fixed at 5.50% to floating, due 2030

Subordinated debentures fixed at 5.50% to floating effective July 1, 2025, due 2030

Subordinated debentures fixed at 3.50% to floating, due 2032

2 unchanged sentences

Total other long-term de bt was $44.45 million at December 31, 2025 compared t o $59.15 million at December 31, 2024 .

On October 1, 2025, the Company redeemed all of the 5.50% fixed-to-floating rate subordinated notes due July 1, 2030, having an aggregate principal amount of $15.00 million.

The Company utilized its line of credit with a correspondent bank to finance the redemption payment.

The Company drew $15.00 million on the line of credit, which has a maturity of September 2, 2027, and has a variable interest rate equal to 0.50% below prime.

Shareholders’ Equity

Total shareholders’ equity increased by $17.04 million or 9.7%, to $191.81 million at December 31, 2025 from $174.77 million at December 31, 2024.

This increase was primarily the result of net income of $9.78 million.

This increase was partially offset by dividends paid of $4.54 million.

This increase was primarily the result of net income of $14.84 million and other comprehensive income of $7.27 million.

These increases were partially offset by dividends paid of $4.58 million.

Analysis of Net Interest Income

4 unchanged sentences

All average balances are daily average balances.

Nonaccrual loans were included in the computation of average balances but have been reflected in the table as loans carrying a zero yield.

Nonaccrual loans were included in the computation of average balances and are included 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.

26 unchanged sentences

( 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 (for years ended December 31, 2024 and December 31, 2023) or provision for loan losses (for the year ended December 31, 2022) divided by average interest-earning assets.

( 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 year ended December 31, 2025 was 3.92%, an increase of 50 basis points compared to December 31, 2024.

The change in NIM reflects the increase in yields on interest-earning assets and the decrease in the average rate on interest-bearing liabilities.

Rate/Volume Analysis

22 unchanged sentences

Comparison of Operating Results for the Years Ended December 31, 2025 and 2024

The following compares the results of operations for the Years Ended December 31, 2025 and 2024 .

Dollar Change

Percent Change

(Dollars in Thousands)

Interest and dividend income

Interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Noninterest income

Noninterest expense

Provision for income taxes

Eagle’s net income for the year ended December 31, 2025 was $ 14.84 million, compared to $9.78 million for the year ended December 31, 2024 .

The decrease of $278,000 or 2.8% was driven by a decrease in noninterest income of $4.94 million.

This decrease was largely offset by decrease in noninterest expense of $2.78 million and an increase in net interest income after provision for credit losses of $1.90 million.

Basic and diluted earnings per common share were $1.25 and $1.24, respectively, for the year ended December 31, 2024.

The increase of $5.06 million, or 51.7%, was driven by an increase in net interest income after provision for credit losses of $8.80 million, partially offset by an increase in noninterest expense of $2.19 million and an increase in provision for income taxes of $2.45 million.

Basic and diluted earnings per common share were both $1.90 for the year ended December 31, 2025 .

Basic and diluted earnings per common share were $1.25 and $1.24, respectively, for the year ended December 31, 2024.

Net Interest Income

Net interest income increased slightly to $63.44 million for the year ended December 31, 2024, from $62.48 million for the year ended December 31, 2023.

This increase of $961,000, or 1.5%, was primarily the result of an increase in interest and dividend income of $12.59 million largely offset by an increase in interest expense of $11.63 million.

Net interest income increased to $ 72.90 million for the year ended December 31, 2025 , from $63.44 million for the year ended December 31, 2024 .

This increase of $9.46 million, or 14.9%, was primarily the result of a decrease in interest expense of $5.26 million and an increase in interest and dividend income of $4.20 million.

Interest and Dividend Income

1 unchanged sentence

Interest and fees on loans increased to $ 97.60 million for the year ended December 31, 2025 , from $92.28 million for the same period ended December 31, 2024 .

This increase of $12.86 million, or 16.2%, was due in part to an increase in the average yield of loans.

This increase of $5.32 million, or 5.8% , was due in part to an increase in the average yield on loans, as well as an increase in the average balances for loans.

The average interest rate earned on loans receivable increased by 24 basis points, from 6.04% for the year ended December 31, 2024 , to 6.28% for the year ended December 31, 2025 .

Interest accretion on purchased loans was $751,000 for the year ended December 31, 2024, which resulted in a 4 basis point increase in net interest margin, compared to $1.01 million for the year ended December 31, 2023, which resulted in a 6 basis point increase in net interest margin.

Interest accretion on purchased loans was $1.15 million for the year ended December 31, 2025 , which resulted in a six-basis point increase in net interest margin, compared to $751,000 for the year ended December 31, 2024 , which resulted in a four-basis point increase in net interest margin.

In addition, average balances for loans receivable, including loans-held-for-sale, for the year ended December 31, 2025 were $1.55 billion, compared to $1.52 billion for the year ended December 31, 2024 .

3 unchanged sentences

Interest Expense

Total interest expense was $40.77 million for the year ended December 31, 2024, increasing from $29.14 million for the year ended December 31, 2023.

The increase of $11.63 million was due to an increase of $9.98 million in interest expense on deposits and a net increase of $1.65 million in interest expense on total borrowings.

Total interest expense was $35.51 million for the year ended December 31, 2025 , decreasing from $40.77 million for the year ended December 31, 2024 .

The decrease of $5.26 million was primarily due to a decrease of $5.20 million in interest expense on total borrowings.

The decrease in interest expense on total borrowings was driven by the average balance of FHLB advances and other borrowings decreasing from $190.08 million for the year ended December 31, 2024 , to $105.12 million for the year ended December 31, 2025 .

The average rate paid on FHLB advances and other borrowings also decreased from 5.36% for the year ended December 31, 2024 , to 4.72% for the year ended December 31, 2025 .

Interest expense on deposits decreased minimally by $62,000 from December 31, 2024.

The overall average rate on total deposits was 1.61% for the year ended December 31, 2025 , compared to 1.70% for the year ended December 31, 2024 .

In addition, the average balance for total deposits was $1.64 billion for the year ended December 31, 2024, compared to $1.60 billion for the year ended December 31, 2023.

The average balance for total borrowings increased from $218.60 million for the year ended December 31, 2023 to $249.16 million for the year ended December 31, 2024.

The increase was due to FHLB advances and other borrowings being deployed to fund loan growth.

The average rate paid on total borrowings also increased from 5.16% for the year ended December 31, 2023, to 5.18% for the year ended December 31, 2024.

However, the average balances for total deposits were $1.72 billion for the year ended December 31, 2025 , compared to $1.64 billion for the year ended December 31, 2024 .

Provision for Credit Losses

Provision for credit losses was $518,000 for the year ended December 31, 2024, compared to $1.46 million in loan loss provisions for the year ended December 31, 2023.

The provision for credit losses for the year ended December 31, 2024 includes a provision for credit losses on loans of $408,000 and a provision for unfunded commitments of $110,000.

Provision for credit losses was $1.18 million for the year ended December 31, 2025 , compared to $518,000 for the year ended December 31, 2024 .

The provision for credit losses for the year ended December 31, 2025 , included an increase in the provision for credit losses on loans to $741,000 and an increase in the provision for unfunded commitments to $440,000.

Noninterest Income

Total noninterest income was $ 18.67 million for the year ended December 31, 2025 , compared to $17.78 million for the year ended December 31, 2024 .

The decrease of $4.94 million, or 21.7% was primarily due to a decrease in mortgage banking, net of $4.96 million for the year ended December 31, 2024.

Mortgage banking, net includes net gain on sale of mortgage loans which decreased $4.66 million to $6.74 million for the year ended December 31, 2024 , compared to $11.40 million for the year ended December 31, 2023 .

The increase of $896,000, or 5.0%, was primarily due to an increase in mortgage banking, net of $531,000 for the year ended December 31, 2025 .

Mortgage banking, net includes net gain on sale of mortgage loans which increased $982,000 to $7.72 million for the year ended December 31, 2025 , compared to $6.74 million for the year ended December 31, 2024 .

During the year ended December 31, 2025 , $230.90 million residential mortgage loans were sold compared to $211.78 million in the prior year.

In addition, gross margin on sale of mortgage loans has compressed due to increased competition and less volume.

For the year ended December 31, 2024, gross margin was 3.18% compared to 3.31% for the year ended December 31, 2023.

Gross margin on sale of mortgage loans increased to 3.34% for the year ended December 31, 2025 , from 3.18% for the year ended December 31, 2024 .

Noninterest Expense

Noninterest expense was $ 69.31 million for the year ended December 31, 2024 , compared to $72.09 million for the year ended December 31, 2023 , a decrease of $2.78 million, or 3.9%.

The largest driver of the decrease was salaries and employee benefits, decreasing 7.6% or $3.25 million to $39.72 million for the year ended December 31, 2024 compared to $42.97 million for the year ended December 31, 2023.

This decrease was due to fewer full-time employees in 2024, resulting in lower salaries and lower group health insurance costs.

In addition, commissions paid decreased due to lower commissions paid on residential mortgage originations.

Noninterest expense was $ 71.50 million for the year ended December 31, 2025 , compared to $69.31 million for the year ended December 31, 2024 , an increase of $2.19 million, or 3.2%.

The primary driver of the increase was salaries and employee benefits, which increased $2.67 million, or 6.7%, to $42.39 million for the year ended December 31, 2025 , compared to $39.72 million for the year ended December 31, 2024 .

Software subscriptions also increased $606,000 due to new system implementations.

However, contract changes led to lower data processing expense which decreased $1.23 million.

Provision for Income Tax es

Provision for income taxes was $ 4.06 million for the year ended December 31, 2025 , compared to $1.61 million for the year ended December 31, 2024 .

The effective tax rate was 14.2% for the year ended December 31, 2024 compared to 13.7% for the prior year and is due to the increase in proportion of tax-exempt income compared to pretax earnings, as well as tax credits from investments in low-income housing tax projects.

The effective tax rate was 21.5% for the year ended December 31, 2025 , compared to 14.2% for the prior year.

The effective tax rate increased as the Company's pretax earnings have increased at a faster pace than tax-exempt income.

Liquidity and Capital Resources

15 unchanged sentences

Remaining Borrowing

(Dollars in Thousands)

(In Thousands)

Federal Home Loan Bank advances

2 unchanged sentences

During the first quarter of 2023, the FRB offered a new Bank Term Funding Program ("BTFP") for eligible depository institutions.

The BTFP offers loans of up to one year in length to institutions pledging collateral eligible for purchase by FRB such as U.S.

The BTFP offered loans of up to one year in length to institutions pledging collateral eligible for purchase by FRB such as U.S.

treasuries, agency securities, and mortgage-backed securities.

4 unchanged sentences

Brokered deposits are another source of funding the Bank may utilize from time to time.

As of December 31, 2024, the Bank had no brokered certificates and $5.57 m illion in brokered money market deposits.

As of December 31, 2023, the Bank had $72.17 million in brokered certificates and $5.28 million 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.

As of December 31, 2024, the Bank had no brokered certificates and $5.57 million in brokered money market deposits.

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 expense, and potential capital infusions into subsidiaries.

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 also has a line of credit with a correspondent bank, which was increased from $10.00 million to $15.00 million as of October 30, 2023.

There was no outstanding balance for this line of credit at December 31, 2024 or December 31, 2023 .

Eagle's ability to receive dividends from the Bank in future periods will depend on several factors, including, without limitation, the Bank's future profits, asset quality, liquidity, and overall condition.

In addition, both the Montana Division of Banking and Financial Institutions and Federal Reserve may require approval to pay dividends, based on certain regulatory statutes and limitations.

Eagle has a $15.00 million line of credit with a correspondent bank.

The outstanding balance for this line of credit was $15.00 million at December 31, 2025 and $0 at December 31, 2024.

The line of credit was used 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 rate was 6.25% as of December 31, 2025.The draw is secured by the assets of the Company and includes certain financial covenants and negative covenants.

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.

3 unchanged sentences

Net cash provided by operating activities was higher for the year ended December 31, 2025 primarily due to changes in loans held-for-sale activity.

Mortgage volumes have been impacted by the current interest rate environment.

Net cash used in the Company’s investing activities, which is primarily comprised of cash transactions related to activity in the loan portfolio and investment securities, was $27.80 million for the year ended December 31, 2024 compared to $108.21 million for the year ended December 31, 2023.

Net cash provided by the Company’s investing activities, which is primarily comprised of cash transactions related to activity in the loan portfolio and investment securities, was $21.96 million for the year ended December 31, 2025 compared to net cash used of $27.80 million for the year ended December 31, 2024.

Net cash provided by investing activities for the year ended December 31, 2025, was impacted by available-for-sale securities maturities, principal payments and calls of $27.12 million for the year ended December 31, 2025 only partially offset by purchases of $7.04 million for the year ended December 31, 2025.

In addition, loan pay-off and principal payments were higher than loan originations during the year.

Loan origination and principal collection, net was $1.30 million for the year ended December 31, 2025.

Net cash used in investing activities for the year ended December 31, 2024, was impacted by loan originations being higher than loan pay-off and principal payments during the year.

3 unchanged sentences

A portion of the proceeds were used to purchase additional available-for-sale securities totaling $10.98 million.

Net cash used in investing activities for the year ended December 31, 2023 was due in part to loan originations being higher than loan pay-off and principal payments during the year.

Loan origination and principal collection, net was $130.74 million for the year ended December 31, 2023.

In addition, available-for-sale securities purchases were $28.13 million during the year ended December 31, 2023, more than offset by available-for sale securities sales and maturities, principal payments and calls of $66.72 million.

Net cash provided by the Company’s financing activities was $6.27 million for the year ended December 31, 2024 compared to $101.59 million for the year ended December 31, 2023.

Net cash provided by financing activities for the year ended December 31, 2024 was driven by an increase in deposits of $46.03 million, largely offset by a decrease in borrowings of $34.81 million.

Net cash provided by financing activities for the year ended December 31, 2023 was largely impacted by borrowings of $106.34 million utilized to fund continued loan growth.

During the third quarter of 2024, net borrowing activity of $43.43 million was presented in the Form 10-Q statement of cash flows for the nine months ended September 30, 2024.

The total amount for net borrowing activity was reported correctly;

however, the specific borrowing line items in the cash flows from financing activities were incorrect.

The borrowing activity was presented as follows:

$14.26 million net short-term advances on FHLB and other borrowings, $29.17 million advances on long-term FHLB and other borrowings and no payments on long-term FHLB and other borrowings.

The correct amounts are as follows:

$40.74 million net short-term payments on FHLB and other borrowings, $105.00 million advances on long-term FHLB and other borrowings and $20.83 million payments on long-term FHLB and other borrowings.

Controls and Procedures for additional information regarding this matter.

Net cash used in the Company’s financing activities was $23.69 million for the year ended December 31, 2025 compared to net cash provided of $6.27 million for the year ended December 31, 2024.

Net cash used in financing activities for the year ended December 31, 2025 was driven by a net decrease in borrowings of $117.91 million largely offset by an increase in deposits of $100.37 million.

Net cash provided by financing activities for the year ended December 31, 2024 was largely impacted by an increase in deposits of $46.03 million, largely offset by a decrease in borrowings of $34.81 million.

Capital Resources

At December 31, 2024 , 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 1.7% compared to a decrease of 1.3% at December 31, 2023 .

At December 31, 2025 , 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 3.4% compared to an increase of 1.7% at December 31, 2024 .

The Bank is within the guidelines set forth by the Board of Directors for interest rate sensitivity.

26 unchanged sentences

Changes in Market

Rate Sensitivity

Interest Rates

As of December 31, 2025

Interest Rates

Rate Sensitivity

(Basis Points)

11 unchanged sentences

Such commitments are subject to the same credit policies and approval process accorded to loans we make.

Commitments are summarized as follows:

Loan Commitments

Loan commitments are summarized as follows:

(In Thousands)

1 unchanged sentence

Letters of credit

Investment Commitments

The Company entered into an investment agreement with a local non-profit on October 1, 2025.

The investment is for a homebuyer assistance program in the state of Montana.

The total commitment is $5.00 million and is expected to be drawn over a three-year period.

The outstanding commitment was $5.00 million as of December 31, 2025.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis