Eagle Bancorp Montana, Inc. 10-Q

ebmt20260630c_10q.htm Table of Contents 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 s hares outstanding As of July 31, 2026 Table of Contents 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 Table of Contents 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. Table of Contents 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. - 1 - Table of Contents 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. - 2 - Table of Contents 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. - 3 - Table of Contents 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. - 4 - Table of Contents 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. - 5 - Table of Contents 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. - 6 - Table of Contents 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 tota le d $ 166,000 a s 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 a nd $ 2,798,000 fo r 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 an d $ 5,112,000 fo r 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 to taled $ 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, th e 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. - 7 - Table of Contents 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 - 8 - Table of Contents 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 deposit s 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 ) - 9 - Table of Contents 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 tota ling $ 15,853,000 a n d $ 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 - 10 - Table of Contents 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 - 11 - Table of Contents 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 - 12 - Table of Contents 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 - 13 - Table of Contents 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. In terest payments received on a cash basis related to nonaccrual loans were $ 247,000 a t 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 - 14 - Table of Contents 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. - 15 - Table of Contents 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 . - 16 - Table of Contents 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. - 17 - Table of Contents 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 - - - - - 18 - Table of Contents 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. - 19 - 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 - 20 - Table of Contents 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 - 21 - Table of Contents 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 - 22 - Table of Contents 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 fund s target rate to 3.75% during the year ended December 31, 2025 . The rate remained at 3.75% du ring 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 bi llion at June 30, 2026, an increase of $19.48 million, or 0.9%, fr om $2.11 billion at December 31, 2025. Loans receivable, net increased by $39.06 million f rom December 31, 2025. Securities available-for-sa le increased $3.98 million, or 1.4%, fr om December 31, 2025. Total liabilities wer e $1.93 billion at June 30, 2026 an increase of $13.89 million, or 0.7%, f rom $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%, fr om December 31, 2025. - 23 - Table of Contents 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 m illion 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. - 24 - Table of Contents 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 lo sses. 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. - 25 - Table of Contents 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. - 26 - Table of Contents 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. - 27 - Table of Contents 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. - 28 - 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. - 29 - 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. - 30 - 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. - 31 - 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. - 32 - 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. - 33 - 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. - 34 - Table of Contents 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. - 35 - Table of Contents 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. - 36 - Table of Contents EAGLE BANCORP MONTANA, INC. AND SUBSIDIARIES 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. - 37 - Table of Contents 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 - 38 -