EBMT Eagle Bancorp Montana Inc

Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $1.9 million, or $0.24 per diluted share, in the first quarter of 2024, compared to $2.2 million, or $0.28 per diluted share, in the preceding quarter, and $3.2 million, or $0.42 per diluted share, in the first quarter of 2023.

Eagle’s board of directors declared a quarterly cash dividend to $0.14 per share on April 18, 2024. The dividend will be payable June 7, 2024, to shareholders of record May 17, 2024. The current dividend represents an annualized yield of 4.40% based on recent market prices.

“Eagle’s first quarter operating results reflect disciplined loan growth and lower noninterest expenses as we continue to navigate the challenges impacting the banking industry,” said Laura F. Clark, President and CEO. “Our team has done an excellent job of attracting high quality loans, achieving loan growth of 8.7% year-over-year, while maintaining strong asset quality metrics. Additionally, we experienced net interest margin retention compared to the linked quarter, even with the inverted yield curve. While the “higher for longer” interest rate environment continues to present a challenge, we are well positioned with a strong balance sheet for future growth opportunities in the year ahead.”

First Quarter 2024 Highlights (at or for the three-month period ended March 31, 2024, except where noted):

• Net income was $1.9 million, or $0.24 per diluted share, in the first quarter of 2024, compared to $2.2 million, or $0.28 per diluted share, in the preceding quarter, and $3.2 million, or $0.42 per diluted share, in the first quarter a year ago.
• Net interest margin (“NIM”) was 3.33% in the first quarter of 2024, a one basis point improvement compared to 3.32% in the preceding quarter, and a 53-basis point contraction compared to 3.86% in the first quarter a year ago.
• Revenues (net interest income before the provision for credit losses, plus noninterest income) were $19.2 million in the first quarter of 2024, compared to $21.0 million in the preceding quarter and $21.1 million in the first quarter a year ago.
• The accretion of the loan purchase discount into loan interest income from acquisitions was $118,000 in the first quarter of 2024, compared to accretion on purchased loans from acquisitions of $168,000 in the preceding quarter.
• Total loans increased 8.7% to $1.50 billion, at March 31, 2024, compared to $1.38 billion a year earlier, and increased modestly compared to $1.48 billion at December 31, 2023.
• Total deposits increased 1.7% to $1.64 billion at March 31, 2024, compared to $1.61 billion a year earlier, and remained consistent compared to December 31, 2023.
• The allowance for credit losses represented 1.10% of portfolio loans and 194.5% of nonperforming loans at March 31, 2024, compared to 1.09% of portfolio loans and 210.6% of nonperforming loans at March 31, 2023.
• The Company’s available borrowing capacity was approximately $418.2 million at March 31, 2024.

				March 31, 2024
(Dollars in thousands)				Borrowings Outstanding		Remaining Borrowing Capacity
Federal Home Loan Bank advances				$	157,540	$	286,398
Federal Reserve Bank discount window					-		31,753
Federal Reserve Bank Term Funding Program					20,000		-
Correspondent bank lines of credit					-		100,000
Total				$	177,540	$	418,151

• The Company paid a quarterly cash dividend in the first quarter of $0.14 per share on March 1, 2024, to shareholders of record February 9, 2024.

Balance Sheet Results

Eagle’s total assets increased 4.7% to $2.08 billion at March 31, 2024, compared to $1.98 billion a year ago, and increased nominally from three months earlier. The investment securities portfolio totaled $311.2 million at March 31, 2024, compared to $349.4 million a year ago, and $318.3 million at December 31, 2023.

Eagle originated $50.4 million in new residential mortgages during the quarter and sold $43.6 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.25%. This production compares to residential mortgage originations of $92.0 million in the preceding quarter with sales of $88.1 million and an average gross margin on sale of mortgage loans of approximately 3.23%.

Total loans increased $120.0 million, or 8.7%, compared to a year ago, and $12.9 million, or 0.9%, from three months earlier. Commercial real estate loans increased 16.1% to $632.5 million at March 31, 2024, compared to $544.6 million a year earlier. Commercial real estate loans were comprised of 66.9% non-owner occupied and 33.1% owner occupied at March 31, 2024. Agricultural and farmland loans increased 11.0% to $257.0 million at March 31, 2024, compared to $231.5 million a year earlier, as the Company continues to build expertise in agricultural lending. Commercial construction and development loans decreased 11.0% to $147.7 million, compared to $165.9 million a year ago. Residential mortgage loans increased 16.1% to $157.4 million, compared to $135.6 million a year earlier. Commercial loans increased 4.9% to $137.6 million, compared to $131.3 million a year ago. Home equity loans increased 15.4% to $90.4 million, residential construction loans decreased 26.4% to $45.0 million, and consumer loans increased 2.3% to $29.7 million, compared to a year ago.

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

Total deposits increased 1.7% to $1.64 billion at March 31, 2024, compared to $1.61 billion at March 31, 2023, and remained consistent compared to December 31, 2023. Noninterest-bearing checking accounts represented 25.0%, interest-bearing checking accounts represented 13.3%, savings accounts represented 14.0%, money market accounts comprised 20.8% and time certificates of deposit made up 26.9% of the total deposit portfolio at March 31, 2024. Time certificates of deposit include $50.0 million in brokered certificates at March 31, 2024, compared to no brokered certificates at March 31, 2023, and $72.2 million at December 31, 2023. The average cost of total deposits was 1.62% in the first quarter of 2024, compared to 1.49% in the preceding quarter and 0.62% in the first quarter of 2023. The estimated amount of uninsured deposits at March 31, 2024, was approximately $284.0 million, or 17% of total deposits, compared to approximately $275.0 million, or 17% of total deposits, at December 31, 2023.

Shareholders’ equity was $168.9 million at March 31, 2024, compared to $163.0 million a year earlier and $169.3 million three months earlier. Book value per share was $21.07 at March 31, 2024, compared to $20.36 a year earlier and $21.11 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $16.05 at March 31, 2024, compared to $15.14 a year earlier and unchanged from three months earlier.  

Operating Results

“Our NIM improved one basis point compared to the preceding quarter, as the yields on earning assets more than offset the cost of funds during the first quarter,” said Clark. “We anticipate continued improvement in our cost of funds during the second half of the year.”

Eagle’s NIM was 3.33% in the first quarter of 2024, compared to 3.32% in the preceding quarter, and a 53-basis point contraction compared to 3.86% in the first quarter a year ago. The interest accretion on acquired loans totaled $118,000 and resulted in a three basis-point increase in the NIM during the first quarter of 2024, compared to $168,000 and a four basis-point increase in the NIM during the preceding quarter. Funding costs for the first quarter of 2024 were 2.67%, compared to 2.58% in the fourth quarter of 2023. Funding costs were 1.33% in the first quarter of 2023. Average yields on interest earning assets for the first quarter of 2024 increased to 5.47%, compared to 5.36% in the fourth quarter of 2023 and 4.87% in the first quarter a year ago.

Net interest income, before the provision for credit losses, remained unchanged at $15.2 million in the first quarter of 2024, compared to the fourth quarter of 2023, and decreased 7.4% compared to $16.4 million in the first quarter of 2023.

Revenues for the first quarter of 2024 decreased 8.8% to $19.2 million, compared to $21.0 million in the preceding quarter and decreased 9.2% compared to $21.1 million in the first quarter a year ago.

Eagle’s total noninterest income decreased 32.0% to $4.0 million in the first quarter of 2024, compared to $5.8 million in the preceding quarter, and decreased 15.4% compared to $4.7 million in the first quarter a year ago. Net mortgage banking, the largest component of noninterest income, totaled $2.2 million in the first quarter of 2024, compared to $3.7 million in the preceding quarter and $3.1 million in the first quarter a year ago. These decreases were largely driven by a decline in net gain on sale of mortgage loans. This was impacted by lower loan volumes and margin compression.

First quarter noninterest expense decreased 9.8% to $17.0 million, compared to $18.9 million in the preceding quarter and increased 3.0% compared to $16.5 million in the first quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the preceding quarter.

For the first quarter of 2024, the Company recorded an income tax expense of $370,000. This compared to an income tax benefit of $315,000 in the preceding quarter and income tax expense of $1.0 million in the first quarter of 2023. The effective tax rate for the first quarter of 2024 was 16.3%, compared to 24.4% for the first quarter of 2023. The anticipated effective tax rate for the first quarter of 2024 was lower due to the increase in proportion of tax-exempt income compared to the pretax earnings, as well as tax credits and other tax benefits related to investments in low income housing tax credit projects.

Credit Quality

During the first quarter of 2024, Eagle recorded a recapture in its provision for credit losses of $135,000. This compared to a $270,000 provision for credit losses in the preceding quarter and a $279,000 provision for credit losses in the first quarter a year ago. The allowance for credit losses represented 227.6% of nonperforming loans at March 31, 2024, compared to 195.2% three months earlier and 210.6% a year earlier. Nonperforming loans were $7.2 million at March 31, 2024, $8.4 million at December 31, 2023, and $7.1 million a year earlier.

Net loan recoveries totaled $65,000 in the first quarter of 2024, compared to net loan charge-offs of $10,000 in the preceding quarter and net loan recoveries of $21,000 in the first quarter a year ago. The allowance for credit losses was $16.4 million, or 1.10% of total loans, at March 31, 2024, compared to $16.4 million, or 1.11% of total loans, at December 31, 2023, and $15.0 million, or 1.09% of total loans, a year ago.

Capital Management

The ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 6.32% at March 31, 2024, from 6.25% a year ago and unchanged from three months earlier. Shareholders’ equity has been impacted by an accumulated other comprehensive loss related to securities available-for-sale, which resulted from unrealized losses primarily related to rapid increases in interest rates. As of March 31, 2024, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. The Bank’s Tier 1 capital to adjusted total average assets was 9.91% as of March 31, 2024.

Stock Repurchase Authority

Eagle announced that its Board of Directors has authorized the repurchase of up to 400,000 shares of its common stock beginning May 1, 2024, representing approximately 5.0% of outstanding shares. Under the 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 upon market conditions and other corporate considerations. The plan is expected to be in place for approximately 12 months, but may be suspended, terminated or modified by the Company’s Board of Directors at any time. The plan does not obligate the Company to purchase any particular number of shares.

About the Company

Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 29 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.”

Forward Looking Statements

This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as "believe," “will” "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations; statements regarding our business plans, prospects, mergers, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, either nationally or in our market areas, that are worse than expected; the emergence or continuation of widespread health emergencies or pandemics including the magnitude and duration of the COVID-19 pandemic, including but not limited to vaccine efficacy and immunization rates, new variants, steps taken by governmental and other authorities to contain, mitigate and combat the pandemic, adverse effects on our employees, customers and third-party service providers, the increase in cyberattacks in the current work-from-home environment, the ultimate extent of the impacts on our business, financial position, results of operations, liquidity and prospects, continued deterioration in general business and economic conditions could adversely affect our revenues and the values of our assets and liabilities, lead to a tightening of credit and increase stock price volatility, and potential impairment charges; the impact of continuing adverse developments affecting the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; an inability to access capital markets or maintain deposits or borrowing costs; competition among depository and other financial institutions; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

Use of Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and performance trends, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts.

The numerator for the core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Reconciliation of the GAAP and non-GAAP financial measures are presented below.

Balance Sheet
(Dollars in thousands, except per share data)									(Unaudited)
						March 31,			December 31,			March 31,
							2024			2023			2023
Assets:
	Cash and due from banks					$	19,479		$	23,243		$	18,087
	Interest bearing deposits in banks						1,438			1,302			1,348
		Total cash and cash equivalents					20,917			24,545			19,435
	Securities available-for-sale, at fair value						311,227			318,279			349,423
	Federal Home Loan Bank ("FHLB") stock						8,449			9,191			7,360
	Federal Reserve Bank ("FRB") stock						4,131			4,131			4,131
	Mortgage loans held-for-sale, at fair value						9,612			11,432			9,927
	Loans:
	Real estate loans:
	Residential 1-4 family						157,414			156,578			135,615
	Residential 1-4 family construction						45,026			43,434			61,190
	Commercial real estate						632,452			608,691			544,618
	Commercial construction and development						147,740			158,132			165,912
	Farmland						140,246			142,590			138,910
	Other loans:
	Home equity						90,418			86,932			78,321
	Consumer						29,677			30,125			28,996
	Commercial						137,640			132,709			131,252
	Agricultural						116,775			125,298			92,609
		Total loans					1,497,388			1,484,489			1,377,423
	Allowance for credit losses						(16,410	)		(16,440	)		(15,000	)
		Net loans					1,480,978			1,468,049			1,362,423
	Accrued interest and dividends receivable						12,038			12,485			10,427
	Mortgage servicing rights, net						15,738			15,853			15,875
	Assets held-for-sale, at fair value						-			-			1,305
	Premises and equipment, net						97,643			94,282			86,614
	Cash surrender value of life insurance, net						48,218			47,939			47,985
	Goodwill						34,740			34,740			34,740
	Core deposit intangible, net						5,514			5,880			7,043
	Other assets						26,869			28,860			26,048
		Total assets				$	2,076,074		$	2,075,666		$	1,982,736
Liabilities:
	Deposit accounts:
	Noninterest bearing					$	408,781		$	418,727		$	460,195
	Interest bearing						1,226,818			1,216,468			1,147,343
		Total deposits					1,635,599			1,635,195			1,607,538
	Accrued expenses and other liabilities						34,950			36,462			30,765
	FHLB advances and other borrowings						177,540			175,737			122,530
	Other long-term debt, net						59,037			58,999			58,887
		Total liabilities					1,907,126			1,906,393			1,819,720
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; 20,000,000 shares authorized;
	8,507,429 shares issued; 8,016,784, 8,016,784 and 8,006,033
	shares outstanding at March 31, 2024, December 31, 2023 and
	March 31, 2023, respectively)						85			85			85
	Additional paid-in capital						108,893			108,819			109,265
	Unallocated common stock held by Employee Stock Ownership Plan						(4,440	)		(4,583	)		(5,013	)
	Treasury stock, at cost (490,645, 490,645 and 501,396 shares at
	March 31, 2024, December 31, 2023 and March 31, 2023, respectively)						(11,124	)		(11,124	)		(11,343	)
	Retained earnings						96,797			96,021			92,547
	Accumulated other comprehensive loss, net of tax						(21,263	)		(19,945	)		(22,525	)
		Total shareholders' equity					168,948			169,273			163,016
		Total liabilities and shareholders' equity				$	2,076,074		$	2,075,666		$	1,982,736

Income Statement										(Unaudited)
(Dollars in thousands, except per share data)							Three Months Ended
							March 31,			December 31,			March 31,
								2024			2023			2023
Interest and dividend income:
	Interest and fees on loans						$	21,942		$	21,481		$	17,737
	Securities available-for-sale							2,724			2,790			2,843
	FRB and FHLB dividends							247			247			107
	Other interest income							29			23			21
		Total interest and dividend income						24,942			24,541			20,708
Interest expense:
	Interest expense on deposits							6,548			6,090			2,460
	FHLB advances and other borrowings							2,497			2,569			1,142
	Other long-term debt							683			684			678
		Total interest expense						9,728			9,343			4,280
Net interest income								15,214			15,198			16,428
(Recapture) provision for credit losses								(135	)		270			279
		Net interest income after (recapture) provision for credit losses						15,349			14,928			16,149
Noninterest income:
	Service charges on deposit accounts							400			444			339
	Mortgage banking, net							2,177			3,718			3,050
	Interchange and ATM fees							563			663			577
	Appreciation in cash surrender value of life insurance							288			301			280
	Net loss on sale of available-for-sale securities							-			-			(224	)
	Other noninterest income							524			686			649
		Total noninterest income						3,952			5,812			4,671
Noninterest expense:
	Salaries and employee benefits							9,718			11,359			9,693
	Occupancy and equipment expense							2,099			1,972			2,073
	Data processing							1,525			1,673			1,212
	Advertising							253			445			281
	Amortization							369			386			418
	Loan costs							398			461			445
	FDIC insurance premiums							299			288			168
	Professional and examination fees							484			438			484
	Other noninterest expense							1,888			1,869			1,759
		Total noninterest expense						17,033			18,891			16,533
Income before provision (benefit) for income taxes								2,268			1,849			4,287
Provision (benefit) for income taxes								370			(315	)		1,045
Net income							$	1,898		$	2,164		$	3,242
Basic earnings per common share							$	0.24		$	0.28		$	0.42
Diluted earnings per common share							$	0.24		$	0.28		$	0.42
Basic weighted average shares outstanding								7,824,928			7,809,274			7,790,188
Diluted weighted average shares outstanding								7,835,304			7,815,022			7,792,467

ADDITIONAL FINANCIAL INFORMATION						(Unaudited)
(Dollars in thousands, except per share data)			Three Months Ended or Years Ended
			March 31,			December 31,			March 31,
				2024			2023			2023
Mortgage Banking Activity (For the quarter):
	Net gain on sale of mortgage loans		$	1,414		$	2,845		$	2,203
	Net change in fair value of loans held-for-sale and derivatives			(173	)		(40	)		(19	)
	Mortgage servicing income, net			936			913			866
		Mortgage banking, net	$	2,177		$	3,718		$	3,050
Performance Ratios (For the quarter):
	Return on average assets			0.37	%		0.42	%		0.67	%
	Return on average equity			4.67	%		5.68	%		7.99	%
	Yield on average interest earning assets			5.47	%		5.36	%		4.87	%
	Cost of funds			2.67	%		2.58	%		1.33	%
	Net interest margin			3.33	%		3.32	%		3.86	%
	Core efficiency ratio*			86.95	%		88.08	%		76.38	%
Asset Quality Ratios and Data:			As of or for the Three Months Ended
			March 31,			December 31,			March 31,
				2024			2023			2023
	Nonaccrual loans		$	5,231		$	8,395		$	5,882
	Loans 90 days past due and still accruing			1,979			26			1,241
	Restructured loans, net			-			-			-
		Total nonperforming loans		7,210			8,421			7,123
	Other real estate owned and other repossessed assets			-			5			-
		Total nonperforming assets		7,210		$	8,426		$	7,123
	Nonperforming loans / portfolio loans			0.48	%		0.57	%		0.52	%
	Nonperforming assets / assets			0.35	%		0.41	%		0.36	%
	Allowance for credit losses / portfolio loans			1.10	%		1.11	%		1.09	%
	Allowance for credit losses/ nonperforming loans			227.60	%		195.23	%		210.59	%
	Gross loan charge-offs for the quarter		$	1		$	11		$	1
	Gross loan recoveries for the quarter		$	66		$	1		$	22
	Net loan (recoveries) charge-offs for the quarter		$	(65	)	$	10		$	(21	)
			March 31,			December 31,			March 31,
				2024			2023			2023
Capital Data (At quarter end):
	Common shareholders' equity (book value) per share		$	21.07		$	21.11		$	20.36
	Tangible book value per share**		$	16.05		$	16.05		$	15.14
	Shares outstanding			8,016,784			8,016,784			8,006,033
	Tangible common equity to tangible assets***			6.32	%		6.32	%		6.25	%
Other Information:
	Average investment securities for the quarter		$	314,129		$	306,678		$	345,033
	Average investment securities year-to-date		$	314,129		$	328,533		$	345,033
	Average loans for the quarter ****		$	1,499,293		$	1,494,181		$	1,366,766
	Average loans year-to-date ****		$	1,499,293		$	1,436,672		$	1,366,766
	Average earning assets for the quarter		$	1,830,316		$	1,817,419		$	1,724,802
	Average earning assets year-to-date		$	1,830,316		$	1,780,727		$	1,724,802
	Average total assets for the quarter		$	2,066,579		$	2,062,267		$	1,947,091
	Average total assets year-to-date		$	2,066,579		$	2,015,586		$	1,947,091
	Average deposits for the quarter		$	1,625,770		$	1,626,598		$	1,605,566
	Average deposits year-to-date		$	1,625,770		$	1,603,861		$	1,605,566
	Average equity for the quarter		$	162,637		$	152,516		$	162,278
	Average equity year-to-date		$	162,637		$	158,807		$	162,278
* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of acquisition
costs and intangible asset amortization, by the sum of net interest income and non-interest income.
** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders' equity,
less goodwill and core deposit intangible, by common shares outstanding.
*** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders'
equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible.
**** Includes loans held for sale

Reconciliation of Non-GAAP Financial Measures
Core Efficiency Ratio								(Unaudited)
(Dollars in thousands)					Three Months Ended
					March 31,			December 31,			March 31,
						2024			2023			2023
Calculation of Core Efficiency Ratio:
	Noninterest expense				$	17,033		$	18,891		$	16,533
	Intangible asset amortization					(369	)		(386	)		(418	)
		Core efficiency ratio numerator				16,664			18,505			16,115
	Net interest income					15,214			15,198			16,428
	Noninterest income					3,952			5,812			4,671
		Core efficiency ratio denominator				19,166			21,010			21,099
	Core efficiency ratio (non-GAAP)					86.95	%		88.08	%		76.38	%

Tangible Book Value and Tangible Assets						(Unaudited)
(Dollars in thousands, except per share data)						March 31,			December 31,			March 31,
							2024			2023			2023
Tangible Book Value:
	Shareholders' equity					$	168,948		$	169,273		$	163,016
	Goodwill and core deposit intangible, net						(40,254	)		(40,620	)		(41,783	)
		Tangible common shareholders' equity (non-GAAP)				$	128,694		$	128,653		$	121,233
	Common shares outstanding at end of period						8,016,784			8,016,784			8,006,033
	Common shareholders' equity (book value) per share (GAAP)					$	21.07		$	21.11		$	20.36
	Tangible common shareholders' equity (tangible book value)
		per share (non-GAAP)				$	16.05		$	16.05		$	15.14
Tangible Assets:
	Total assets					$	2,076,074		$	2,075,666		$	1,982,736
	Goodwill and core deposit intangible, net						(40,254	)		(40,620	)		(41,783	)
		Tangible assets (non-GAAP)				$	2,035,820		$	2,035,046		$	1,940,953
	Tangible common shareholders' equity to tangible assets
		(non-GAAP)					6.32	%		6.32	%		6.25	%

Contacts:

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