Eagle Bancorp Montana Earns $1.7 Million, or $0.45 per Diluted Share, in Third Quarter; Declares Regular Quarterly Cash Dividend of $0.09 per Share

HELENA, Mont., Oct. 23, 2017 (GLOBE NEWSWIRE) — Eagle Bancorp Montana, Inc. (NASDAQ:EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana, today reported third quarter net income of $1.7 million, or $0.45 per diluted share, compared to $1.1 million, or $0.27 per diluted share, in the preceding quarter and $1.8 million, or $0.46 per diluted share, in the third quarter a year ago.  In the first nine months of 2017, net income was $3.6 million, or $0.92 per diluted share, compared to $3.7 million, or $0.95 per diluted share, in the first nine months of 2016.

Additionally, Eagle’s board of directors declared its regular quarterly cash dividend of $0.09 per share.  The dividend will be payable December 1, 2017 to shareholders of record November 11, 2017.  The current annualized yield is 1.80% based on recent market prices.

“The highlight of the quarter was the signing of a definitive merger agreement to acquire Ruby Valley Bank, Twin Bridges, Montana,” said Peter J. Johnson, President and CEO. “We are maintaining both the infrastructure and banking teams to grow our organization and expect to generate operating efficiencies when the merger is completed.  This transaction presents a unique opportunity for us to expand our presence in the attractive markets of Madison County and the Ruby Valley.  The combination of our two organizations will provide the ability to create revenue and cost synergies while offering Ruby Valley Bank customers a broader product offering, increased lending limits, and an expanded branch delivery system that stretches throughout the state of Montana.”

The acquisition of $90 million Ruby Valley will make Opportunity Bank the fifth largest Montana based bank with approximately $800 million in assets. Ruby Valley Bank, headquartered in Twin Bridges, Montana, currently operates 2 branches in Twin Bridges and Sheridan and will add approximately $90 million in assets, $78 million in deposits, and $55 million in gross loans to Opportunity Bank.  The combined company will have 16 branches.

Also, on October 13, 2017, Eagle successfully completed a public offering of its common stock, and issued 1,189,041 shares and received approximately $20.1 million in net cash proceeds.

Third Quarter 2017 Highlights (at or for the three-month period ended September 30, 2017, except where noted)

  • Net income grew 61.4% to $1.7 million, or $0.45 per diluted share, in the third quarter, compared to $1.1 million, or $0.27 per diluted share, in the preceding quarter, and was down compared to $1.8 million, or $0.46 per diluted share, in the third quarter of 2016.
  • Acquisition costs were $276,000 in the third quarter.
  • Net interest margin was 3.80%, which was up 15 basis points compared to the preceding quarter and a 25 basis point improvement compared to the third quarter a year ago.
  • Revenues (net interest income before the provision for loan losses, plus non-interest income) were $10.1 million, which was unchanged compared to the third quarter a year ago.
  • Total loans increased 10.5% to $510.2 million at September 30, 2017, compared to $461.5 million a year earlier. 
  • Commercial real estate loans increased 20.3% to $247.5 million, or 48.5% of total loans at September 30, 2017, compared to $205.8 million, or 44.6% of total loans a year earlier.
  • Capital ratios remain strong with a tangible common shareholders’ equity ratio of 8.06% at September 30, 2017.
  • Declared quarterly cash dividend of $0.09 per share.

Balance Sheet Results

“Loan growth remains solid, with a modest increase compared to three months earlier and double-digit growth compared to a year ago,” said Johnson.  “The increase is largely concentrated in the commercial real estate loan sector.”  Total loans increased modestly to $510.2 million at September 30, 2017, compared to $508.1 million three months earlier and increased 10.5% compared to $461.5 million a year earlier. 

Eagle originated $84.9 million in new residential mortgages during the quarter, excluding construction loans, and sold $85.3 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.02%.  This production compares to residential mortgage originations of $84.3 million in the preceding quarter with sales of $73.3 million.

Commercial real estate loans increased 20.3% to $247.5 million at September 30, 2017, compared to $205.8 million a year earlier, while residential mortgage loans decreased 3.6% to $109.3 million compared to $113.3 million a year earlier.  Commercial loans decreased 2.6% to $58.6 million, home equity loans increased 7.9% to $51.5 million and construction loans increased 44.l% to $29.8 million, compared to a year ago.  

Eagle’s total deposits increased 2.1% to $525.2 million at September 30, 2017, compared to $514.3 million at June 30, 2017 and increased 1.9% compared to $515.3 million a year ago.  As of quarter-end, checking and money market accounts represent 54.9%, savings accounts represent 16.7%, and CDs comprise 28.4% of the total deposit portfolio.  

Total assets increased 4.2% to $702.6 million at September 30, 2017, compared to $674.5 million a year earlier but decreased modestly compared to $710.2 million at June 30, 2017.  Shareholders’ equity increased 2.0% to $63.3 million at September 30, 2017, compared to $62.1 million three months earlier and increased 5.5% compared to $60.0 million one year earlier.  Tangible book value improved to $14.70 per share at September 30, 2017, compared to $14.37 per share at June 30, 2017, and $13.91 per share a year earlier. 

Operating Results

“Our net interest margin improved 15 basis points compared to the preceding quarter and expanded 25 basis points compared to the year ago quarter, largely due to profitable loan growth and rising interest rates,” Johnson said.  Eagle’s net interest margin was 3.80% in the third quarter, compared to 3.65% in the preceding quarter, and 3.55% in the third quarter a year ago.  Year-to-date, Eagle’s net interest margin improved 28 basis points to 3.68% compared to 3.40% in the first nine months of 2016.  Funding costs for the third quarter were up 16 basis points while asset yields were up 41 basis points compared to a year ago.  The investment securities portfolio decreased to $120.8 million at September 30, 2017, compared to $133.8 million a year ago, which had a positive impact on the average yields on earning assets. 

Eagle’s third quarter revenues increased 7.4% to $10.1 million, compared to $9.5 million in the preceding quarter and was unchanged compared to the third quarter a year ago.  Year-to-date, revenues increased 6.3% to $28.3 million compared to $26.6 million in the first nine months of 2016.  Net interest income before the provision for loan loss increased 13.6% to $6.2 million in the third quarter compared to $5.4 million in the third quarter one year ago, and increased 4.7% compared to $5.9 million in the preceding quarter.  In the first nine months of the year, net interest income increased 15.0% to $17.5 million, compared to $15.2 million in the first nine months of 2016.

Noninterest income decreased 14.9% to $4.0 million in the third quarter, compared to $4.7 million in the third quarter a year ago, but increased 11.7% compared to $3.6 million in the preceding quarter.  The net gain on sale of mortgage loans totaled $2.6 million in the third quarter, compared to $2.3 million in the preceding quarter and $3.2 million in the third quarter a year ago.  In the first nine months of 2017, noninterest income decreased to $10.8 million compared to $11.4 million in the first nine months of 2016, reflecting lower gains from sale of mortgage loans over the past 12 months.

Third quarter noninterest expenses were $7.6 million, the same as in the preceding quarter.  In the third quarter of 2016 noninterest expenses totaled $7.2 million.  In the first nine months of 2017, noninterest expenses totaled $22.6 million compared to $20.4 million in the same period a year earlier.  Higher compensation expenses and acquisition costs contributed to the majority of the year-over-year increase. 

Credit Quality

Eagle’s third quarter provision for loan losses was $331,000, compared to $302,000 in the preceding quarter and $472,000 in the third quarter a year ago.  The allowance for loan losses represented 394.0% of nonperforming loans at September 30, 2017, compared to 309.2% three months earlier and 263.3% a year earlier.

Nonperforming loans (NPLs) were $1.4 million at the end of the third quarter, which was down 17.4% compared to $1.7 million three months earlier, and down 21.0% compared to $1.8 million a year earlier.   

Eagle’s net charge-offs were $56,000 in the third quarter, compared to $152,000 in the preceding quarter and $82,000 in the third quarter a year ago.  The allowance for loan losses was $5.5 million, or 1.08% of total loans at September 30, 2017, compared to $5.2 million, or 1.03% of total loans at June 30, 2017 and $4.7 million, or 1.01% of total loans a year ago.

Total OREO and other repossessed assets was $527,000 at September 30, 2017, compared to $493,000 at June 30, 2017 and $513,000 a year ago.  Nonperforming assets (NPAs), consisting of nonperforming loans, OREO and other repossessed assets, loans delinquent 90 days or more, and restructured loans, decreased 11.9% to $1.9 million at June 30, 2017 or 0.27% of total assets, compared to $2.2 million, or 0.31% of total assets three months earlier and decreased 15.6% compared to $2.3 million, or 0.34% of total assets a year earlier. 

Capital Management

Eagle Bancorp Montana continues to be well capitalized with the ratio of tangible common shareholders’ equity to tangible asset of 8.06% at September 30, 2017.  (Shareholders’ equity, less goodwill and core deposit intangible to tangible assets).

On February 13, 2017, the Company completed the issuance of $10 million of senior unsecured debt.  The net proceeds of $9.8 million was used as capital contribution to its bank subsidiary to support growth.

About the Company

Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana and is the holding company of Opportunity Bank, a community bank established in 1922 that serves consumers and small businesses in Montana through 14 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, merger with Ruby Valley Bank, 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, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; loan demand or residential and commercial real estate values in Montana; our ability to continue to  increase and manage our commercial real estate and commercial business loans; 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; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; the effect of our pending acquisition of TwinCo, Inc. including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations and the diversion of management time on issues related to the proposed merger. 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.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the proposed merger, Eagle will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a Proxy Statement of TwinCo, Inc. (“TwinCo”) and a Prospectus of Eagle, as well as other relevant documents concerning the proposed merger. Investors and stockholders are urged to read the Registration Statement and the Proxy Statement/Prospectus regarding the proposed merger when it becomes available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. A free copy of the Registration Statement and Proxy Statement/Prospectus, as well as other filings containing information about Eagle and TwinCo, when they become available, may be obtained at the SEC’s Internet site (www.sec.gov). Copies of the Registration Statement and Proxy Statement/Prospectus (when they become available) and the filings that will be incorporated by reference therein may also be obtained, free of charge, from Eagle’s website at opportunitybank.com or by contacting Eagle at 406-442-3080.

PARTICIPANTS IN SOLICITATION

Eagle and TwinCo and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of TwinCo in connection with the proposed merger. Information about the directors and executive officers of Eagle is set forth in the proxy statement for Eagle’s 2017 annual meeting of stockholders, as filed with the SEC on a Schedule 14A on March 14, 2017. Information about the directors and executive officers of TwinCo will be set forth in the Proxy Statement/Prospectus. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction and a description of their direct and indirect interests, by security holdings or otherwise, may be obtained by reading the Proxy Statement/Prospectus and other relevant documents regarding the proposed merger to be filed with the SEC (when they become available). Free copies of these documents may be obtained as described in the preceding paragraph.

Balance Sheet              
(Dollars in thousands, except per share data)     (Unaudited)
            September 30, June 30, September 30,
              2017     2017     2016  
                 
Assets:              
  Cash and due from banks       $   7,371   $   7,244   $   6,802  
  Interest-bearing deposits with banks         784       1,797       1,029  
    Total cash and cash equivalents       8,155       9,041       7,831  
  Securities available-for-sale, at market value         120,767       123,191       133,754  
  FHLB stock, at cost              4,121       4,841       3,870  
  FRB stock             871       871       871  
  Investment in Eagle Bancorp Statutory Trust I         155       155       155  
  Loans held-for-sale             9,606       16,206       19,415  
  Loans:              
    Residential mortgage (1-4 family)       109,250       110,906       113,287  
    Commercial loans         58,554       58,230       60,102  
    Commercial real estate         247,501       246,005       205,819  
    Construction loans         29,760       29,440       20,649  
    Consumer loans         14,696       15,293       14,867  
    Home equity           51,450       49,266       47,694  
    Unearned loan fees         (1,027 )     (1,008 )     (919 )
      Total loans         510,184       508,132       461,499  
  Allowance for loan losses           (5,500 )     (5,225 )     (4,650 )
    Net loans           504,684       502,907       456,849  
  Accrued interest and dividends receivable         2,269       2,174       2,138  
  Mortgage servicing rights, net           6,398       6,127       5,439  
  Premises and equipment, net           20,860       20,040       19,543  
  Cash surrender value of life insurance         14,385       14,289       13,996  
  Real estate and other assets acquired in settlement of loans, net     527       493       513  
  Goodwill             7,034       7,034       7,034  
  Core deposit intangible           300       328       416  
  Deferred tax asset, net           1,349       1,132       462  
  Other assets             1,089       1,385       2,209  
    Total assets       $   702,570   $   710,214   $   674,495  
                 
Liabilities:              
  Deposit accounts:              
  Noninterest bearing             104,866       91,811       89,242  
  Interest bearing             420,301       422,454       426,035  
    Total deposits         525,167       514,265       515,277  
  Accrued expense and other liabilities         5,426       4,867       5,363  
  FHLB advances and other borrowings         83,836       104,182       78,855  
  Other long-term debt, net           24,795       24,778       14,965  
    Total liabilities         639,224       648,092       614,460  
                 
Shareholders’ Equity:              
  Preferred stock (no par value; 1,000,000 shares authorized;      
    none issued or outstanding)           –        –        –   
  Common stock (par value  $0.01; 8,000,000 shares authorized;       
    4,083,127 shares issued; 3,811,409, 3,811,409 and 3,779,464 shares outstanding    
    at September 30, 2017, June 30, 2017 and September 30, 2016, respectively)     41       41       41  
  Additional paid-in capital           22,477       22,444       22,184  
  Unallocated common stock held by employee stock ownership plan (ESOP)     (684 )     (725 )     (850 )
  Treasury stock, at cost (271,718, 271,718 and 303,663 shares at       
    September 30, 2017, June 30, 2017 and September 30, 2016, respectively)     (2,971 )     (2,971 )     (3,321 )
  Retained earnings             43,837       42,460       40,096  
  Accumulated other comprehensive income         646       873       1,885  
    Total shareholders’ equity        63,346       62,122       60,035  
    Total liabilities and shareholders’ equity   $   702,570   $   710,214   $   674,495  
                 

 

Income Statement       (Unaudited)     (Unaudited)
(Dollars in thousands, except per share data)     Three Months Ended   Nine Months Ended
              September 30, June 30, September 30,   September 30,
                2017   2017     2016       2017     2016
Interest and dividend Income:                
  Interest and fees on loans     $   6,478 $   6,174   $   5,461     $   18,222   $   15,253
  Securities available-for-sale         693     714       709         2,136       2,196
  FRB and FHLB dividends         48     36       37         124       103
  Interest on deposits with banks         2     1       –          3       1
  Other interest income         3     –        1         4       4
    Total interest and dividend income         7,224     6,925       6,208         20,489       17,557
Interest Expense:                  
  Interest expense on deposits         386     376       383         1,142       1,119
  FHLB advances and other borrowings         329     322       209         856       622
  Other long-term debt         350     347       195         969       584
    Total interest expense         1,065     1,045       787         2,967       2,325
Net interest income           6,159     5,880       5,421         17,522       15,232
Loan loss provision       331     302       472         934       1,381
  Net interest income after loan loss provision       5,828     5,578       4,949         16,588       13,851
             
Noninterest income:              
  Service charges on deposit accounts       250     239       229         721       639
  Net gain on sale of loans       2,574     2,263       3,164         6,662       7,320
  Mortgage loan servicing fees       525     509       462         1,581       1,267
  Wealth management income         142     180       166         463       461
  Interchange and ATM fees         214     228       227         648       652
  Appreciation in cash surrender value of life insurance       125     126       133         375       358
  Net (loss) gain on sale of available-for-sale securities       –      (14 )     110         (14 )     194
  Net (loss) gain on sale of real estate owned and other repossessed property     –      (24 )     (6 )       (25 )     6
  Other noninterest income       158     63       204         355       494
  Total noninterest income       3,988     3,570       4,689         10,766       11,391
             
Noninterest expense:              
  Salaries and employee benefits        4,331     4,586       4,177         13,350       11,783
  Occupancy and equipment expense       680     672       698         2,069       2,158
  Data processing       563     566       456         1,696       1,467
  Advertising       255     269       192         713       530
  Amortization of mortgage servicing fees       288     262       326         812       839
  Amortization of core deposit intangible and tax credits       107     107       112         321       335
  Federal insurance premiums       78     36       99         198       305
  Postage       48     51       60         147       148
  Legal, accounting and examination fees       107     200       120         392       279
  Consulting fees       14     59       44         122       161
  Acquisition costs       276     –        –          276       – 
  Write-down on real estate owned and other repossessed property     –      9       –          45       – 
  Other noninterest expense       810     803       875         2,475       2,388
  Total noninterest expense       7,557     7,620       7,159         22,616       20,393
             
Income before income taxes          2,259     1,528       2,479         4,738       4,849
Income tax expense           538     462       707         1,188       1,166
Net income         $   1,721 $   1,066   $   1,772     $   3,550   $   3,683
             
Basic earnings per share     $   0.45 $   0.28   $   0.46     $   0.93   $   0.97
Diluted earnings per share     $   0.45 $   0.27   $   0.46     $   0.92   $   0.95
Weighted average shares              
  outstanding (basic EPS)       3,811,409     3,811,409       3,779,464         3,811,409       3,779,464
Weighted average shares              
  outstanding (diluted EPS)       3,863,656     3,869,885       3,873,171         3,869,695       3,873,171
       

 

Financial Ratios and Other Data          
(Dollars in thousands, except per share data)          
(Unaudited)   September June 30 September    
        2017     2017     2016      
Asset Quality:            
  Nonaccrual loans   $   1,396   $   1,611   $   1,421      
  Loans 90 days past due     –       79       301      
  Restructured loans, net     –       –       44      
    Total nonperforming loans     1,396       1,690       1,766      
  Other real estate owned and other repossessed assets     527       493       513      
    Total nonperforming assets $   1,923   $   2,183   $   2,279      
  Nonperforming loans / portfolio loans   0.27 %   0.33 %   0.38 %    
  Nonperforming assets / assets   0.27 %   0.31 %   0.34 %    
  Allowance for loan losses / portfolio loans   1.08 %   1.03 %   1.01 %    
  Allowance / nonperforming loans   393.98 %   309.17 %   263.31 %    
  Gross loan charge-offs for the quarter $   60   $   189   $   83      
  Gross loan recoveries for the quarter $   4   $   37   $   1      
  Net loan charge-offs for the quarter $   56   $   152   $   82      
               
Capital Data (At quarter end):          
  Tangible book value per share (2) $   14.70   $   14.37   $   13.91      
  Shares outstanding   3,811,409     3,811,409     3,779,464      
  Tangible Common Equity to Tangible Assets (2)   8.06 %   7.79 %   7.88 %    
               
Profitability Ratios (For the quarter):          
  Efficiency ratio (1)     73.42 %   79.50 %   69.70 %    
  Return on average assets   0.98 %   0.61 %   1.07 %    
  Return on average equity   10.87 %   6.97 %   11.82 %    
  Net interest margin     3.80 %   3.65 %   3.55 %    
               
Profitability Ratios (Year-to-date):          
  Efficiency ratio (1)      78.81 %   81.83 %   75.34 %    
  Return on average assets   0.69 %   0.54 %   0.76 %    
  Return on average equity   7.75 %   6.10 %   8.44 %    
  Net interest margin     3.68 %   3.63 %   3.40 %    
               
Other Information            
  Average total assets for the quarter $   704,336   $   700,682   $   664,580      
  Average total assets year to date $   690,112   $   682,486   $   649,203      
  Average earning assets for the quarter $   648,385   $   644,885   $   611,055      
  Average earning assets year to date $   634,365   $   626,791   $   596,858      
  Average loans for the quarter (3) $   520,603   $   512,138   $   471,437      
  Average loans year to date (3) $   502,563   $   493,393   $   449,334      
  Average equity for the quarter $   63,315   $   61,134   $   59,958      
  Average equity year to date $   61,096   $   59,959   $   58,157      
  Average deposits for the quarter $   517,660   $   512,736   $   500,381      
  Average deposits year to date $   516,194   $   515,054   $   491,987      
               
(1) The efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of intangible asset amortization, by the sum of net interest income and non-interest income: See “Use of Non-GAAP Financial Measures”    
(2) Tangible book value per share and tangible common shareholders’ equity to tangible assets is a non GAAP ratio. See “Use of Non-GAAP Financial Measures”      
(3)  includes loans held for sale: see “Use of Non-GAAP Financial Measures”     
               

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 our efficiency ratio and tangible book value per share, which are non-GAAP financial measures.  The numerator for the efficiency ratio is calculated by subtracting 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.  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.

Efficiency Ratio     (Unaudited)     (Unaudited)
(Dollars in thousands, except per share data) Three Months Ended   Nine Months Ended
          September 30, June 30, September 30,   September 30,
            2017     2017     2016       2017     2016  
Calculation of Efficiency Ratio:            
  Noninterest expense $   7,557   $   7,620   $   7,159     $   22,616   $  20,393  
  Intangible asset amortization     (107 )     (107 )     (112 )       (321 )     (335 )
    Efficiency ratio numerator     7,450       7,513       7,047         22,295       20,058  
                     
  Net interest income     6,159       5,880       5,421         17,522       15,232  
  Noninterest income     3,988       3,570       4,689         10,766       11,391  
    Efficiency ratio denominator     10,147       9,450       10,110         28,288       26,623  
                     
  Efficiency ratio      73.42 %   79.50 %   69.70 %     78.81 %   75.34 %

 

Tangible Book Value and Tangible Assets   (Unaudited)  
(Dollars in thousands, except per share data)   September 30, June 30, September 30,  
              2017     2017     2016    
Tangible Book Value:              
  Shareholders’ equity     $   63,346   $   62,122   $   60,035    
  Goodwill and core deposit intangible, net       (7,334 )     (7,362 )     (7,450 )  
    Tangible common shareholders’ equity   $   56,012   $   54,760   $   52,585    
                   
  Common shares outstanding at end of period       3,811,409       3,811,409       3,779,464    
                   
  Common shareholders’ equity (book value) per share (GAAP) $   16.62   $   16.30   $   15.88    
                   
  Tangible common shareholders’ equity (tangible book value)         
    per share (non-GAAP)     $   14.70   $   14.37   $   13.91    
                   
Tangible Assets:              
  Total assets       $   702,570   $   710,214   $   674,495    
  Goodwill and core deposit intangible, net       (7,334 )     (7,362 )     (7,450 )  
    Tangible assets (non-GAAP)   $   695,236   $   702,852   $   667,045    
                   
  Tangible common shareholders’ equity to tangible assets        
    (non-GAAP)         8.06 %   7.79 %   7.88 %  

 

CONTACT: Contacts: 	
Peter J. Johnson, President and CEO
(406) 457-4006 
Laura F. Clark, SVP and CFO
(406) 457-4007