HELENA, Mont., July 24, 2018 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ:EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana, today reported net income increased 132.6% to $1.3 million, or $0.24 per diluted share, in the second quarter of 2018 compared to $573,000, or $0.11 per diluted share, in the first quarter of 2018, and increased 25.0% compared to $1.1 million, or $0.27 per diluted share, in the second quarter of 2017. Second quarter 2018 operating results were impacted by $131,000 of acquisition-related expenses, compared to $234,000 of acquisition-related expenses in the preceding quarter and no acquisition expenses in the second quarter of 2017. In the first six months of 2018, net income increased 4.2% to $1.9 million, or $0.35 per diluted share, compared to $1.8 million, or $0.47 per diluted share, in the first six months of 2017.

Additionally, Eagle’s board of directors increased its regular quarterly cash dividend to $0.0925 per share. The dividend will be payable September 7, 2018 to shareholders of record August 17, 2018. The current annualized yield is 1.92% based on recent market prices.

“Our expansion in our Montana markets continues to deliver strong loan growth and is supporting our strong net interest margin,” stated Peter J. Johnson, President and CEO. “Profitability in our second quarter was solid, and year-to-date earnings grew 4.2% compared to the first six months of 2017, reflecting the success of our completed acquisition with Ruby Valley Bank, as well as other growth initiatives we are implementing.”

The acquisition, which was completed during the first quarter of 2018, added approximately $94 million in assets, $82 million in deposits and $55 million in gross loans and made Opportunity Bank the fifth largest Montana-based bank based on asset size.

Second Quarter 2018 Highlights (at or for the three-month period ended June 30, 2018, except where noted)

-- Net income was $1.3 million, or $0.24 per diluted share. -- Acquisition costs were $131,000 in the second quarter. -- Purchase discount on loans from the Ruby Valley Bank Portfolio was $1.8 million at January 31, 2018 (the “acquisition date”), of which $1.4 million remains as of June 30, 2018. -- The accretion of the loan purchase discount into loan interest income from the Ruby Valley Bank transaction was $425,000 in the second quarter, compared to zero in the preceding quarter. -- Net interest margin improved 41 basis points to 4.18% in the second quarter, compared to 3.77% in the preceding quarter. -- Revenues (net interest income before the provision for loan losses, plus non-interest income) increased 15.2% to $10.9 million, compared to $9.4 million in the second quarter a year ago. -- Return on average assets was 0.65%. -- Return on average equity was 5.83%. -- Total loans increased 14.5% to $581.7 million at June 30, 2018, compared to $508.1 million a year earlier. -- Commercial real estate loans increased 13.0% to $216.3 million at June 30, 2018, compared to $191.4 million a year earlier. -- Total deposits increased 19.2% to $613.2 million, compared to $514.3 million a year ago. -- Capital ratios remain well capitalized with a tangible common shareholders’ equity ratio of 9.59% at June 30, 2018. -- Declared quarterly cash dividend of $0.0925 per share.

Balance Sheet Results

Total assets increased 16.4% to $826.8 million at June 30, 2018, compared to $710.2 million a year ago, in large part due to the Ruby Valley Bank acquisition. At March 31, 2018, total assets were $815.9 million.

“Loan production continues to grow at a healthy pace, increasing 2.6% in the second quarter, or 10.4%, on an annualized basis,” said Johnson. Total loans increased 14.5% to $581.7 million at June 30, 2018, compared to $508.1 million a year earlier and increased 2.6% compared to $567.0 million three months earlier.

Eagle originated $84.0 million in new residential mortgages during the quarter, excluding construction loans, and sold $73.6 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 2.3%. This production compares to residential mortgage originations of $50.9 million in the preceding quarter with sales of $49.0 million.

Commercial real estate loans increased 13.0% to $216.3 million at June 30, 2018, compared to $191.4 million a year earlier. Residential mortgage loans increased modestly to $112.3 million, compared to $110.9 million a year earlier. Commercial loans increased 25.3% to $70.0 million, home equity loans increased 7.9% to $53.2 million, residential construction loans increased 5.3% to $31.0 million and construction and development loans decreased 18.3% to $36.6 million, compared to a year ago. Loans related to agriculture increased as a result of the acquisition.

Total deposits were $613.2 million at June 30, 2018, a 2.0% decrease compared to $625.9 million at March 31, 2018, and a 19.2% increase compared to $514.3 million a year ago. At June 30, 2018, checking and money market accounts represent 55.7%, savings accounts represent 17.7%, and CDs comprise 26.6% of the total deposit portfolio.

Shareholders’ equity increased modestly to $91.8 million at March 31, 2018, compared to $90.9 million three months earlier and increased 47.8% compared to $62.1 million one year earlier. Tangible book value was $14.28 per share at June 30, 2018, compared to $14.09 per share at March 31, 2018, and $14.37 per share a year earlier.

Operating Results

“Our net interest margin increased 41 basis points compared to the preceding quarter and 52 basis points compared to the second quarter a year ago, in part due to rising interest rates which produced higher yields on loans,” said Johnson. “In addition, the interest accretion on purchased loans totaled $425,000 and resulted in a 23 basis point increase in the NIM during the second quarter, compared to no interest accretion in the preceding quarter.” Eagle’s net interest margin was 4.18% in the second quarter, compared to 3.77% in the preceding quarter, and 3.66% in the second quarter a year ago. In the first six months of 2018, Eagle’s net interest margin was 3.91% compared to 3.66% in the first six months a year ago. The investment securities portfolio increased to $154.3 million at June 30, 2018, compared to $123.2 million a year ago, which increased the average yields on earning assets to 4.52% from 4.27% a year ago.

Fueled by solid loan growth and expanding yields on portfolio loans, Eagle’s second quarter revenues increased 14.3% to $10.9 million, compared to $9.5 million in the preceding quarter and increased 15.2% when compared to $9.4 million in the second quarter a year ago. Year-to-date, revenues increased 12.5% to $20.4 million, compared to $18.1 million in the first six months of 2017. Net interest income before the provision for loan loss increased 14.1% to $7.8 million in the second quarter compared to $6.8 million in the preceding quarter, and increased 32.8% compared to $5.9 million in the second quarter a year ago. In the first six months of 2018, net interest income increased 29.0% to $14.7 million, compared to $11.4 million in the first six months of 2017.

With solid gains from loan sales, noninterest income increased 15.1% to $3.1 million in the second quarter, compared to $2.7 million in the preceding quarter, but decreased 13.6% compared to $3.6 million in the second quarter a year ago, when residential mortgage loan originations were very robust. The net gain on sale of mortgage loans totaled $1.7 million in the second quarter, compared to $1.4 million in the preceding quarter and $2.3 million in the second quarter a year ago. Year-to-date, noninterest income was $5.8 million, compared to $6.8 million in the first six months of 2017.

Second quarter noninterest expenses were $9.2 million compared to $8.3 million in the preceding quarter and $7.6 million in the second quarter a year ago. Acquisition costs totaled $131,000 for the current quarter, compared to $234,000 for the preceding quarter. There were no acquisition costs in the second quarter one year ago. In the first six months of the year, noninterest expenses totaled $17.6 million, compared to $15.1 million in the first six months of 2017.

For the second quarter of 2018, Eagle recorded $293,000 in income tax expense for an effective tax rate of 18.0%, reflecting the new lower corporate tax rates.

Credit Quality

Asset quality continues to improve with lower balances of nonperforming assets and gradual increase in reserves. The allowance for loan losses represented 370.7% of nonaccrual loans at June 30, 2018, compared to 352.3% three months earlier and 309.2% a year earlier. The second quarter provision for loan losses was $24,000, compared to $502,000 in the preceding quarter and $302,000 in the second quarter a year ago.

Total OREO and other repossessed assets decreased to $457,000 at June 30, 2018, compared to $639,000 at March 31, 2018 and $493,000 a year ago. Nonperforming assets (NPAs), consisting of nonaccrual loans, OREO and other repossessed assets, loans delinquent 90 days or more, and restructured loans, decreased to $2.1 million at June 30, 2018 or 0.26% of total assets, compared to $2.4 million, or 0.29% of total assets three months earlier and $2.2 million, or 0.31% of total assets a year earlier.

Nonperforming loans (NPLs) were $1.7 million at June 30, 2018, which was unchanged from both three months earlier and a year earlier.

Net charge-offs were $4,000 in the second quarter, compared to $122,000 in the preceding quarter and $152,000 in the second quarter a year ago. The allowance for loan losses was $6.2 million, or 1.06% of total loans at June 30, 2018, compared to $6.1 million, or 1.08% of total loans at March 31, 2018 and $5.2 million, or 1.03% of total loans a year ago.

Capital Management

Eagle Bancorp Montana continues to be well capitalized with the ratio of tangible common shareholders’ equity to tangible asset of 9.59% at June 30, 2018. (Shareholders’ equity, less goodwill and core deposit intangible to tangible assets).

“Our ongoing ability to access the capital markets on favorable terms is one of the primary strengths of our franchise,” said Johnson. 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.

Stock Repurchase

Eagle announced that its Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock, representing approximately 1.8% 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.

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 17 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, commercial business and agricultural 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 acquisition of Ruby Valley Bank 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 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.

Balance Sheet (Dollars in thousands, except per share data) (Unaudited) (Unaudited) (Unaudited) June 30, March 31, June 30, 2018 2018 2017 - ------- - - ------- - - ------- - Assets: Cash and due from banks $ 7,583 $ 7,679 $ 7,244 Interest bearing deposits in 1,397 1,641 1,797 banks Federal funds sold - 3,591 - - ------- - - ------- - - ------- - Total cash and cash equivalents 8,980 12,911 9,041 Securities available-for-sale, at market 154,265 158,417 123,191 value FHLB stock 4,559 3,704 4,841 FRB stock 2,019 2,019 871 Investment in Eagle Bancorp Statutory Trust I 155 155 155 Loans held-for-sale 11,700 8,979 16,206 Loans: Real Estate loans: Residential 1-4 family 112,314 112,891 110,906 Residential 1-4 family construction 31,009 26,608 29,440 Commercial real estate 216,264 215,208 191,427 Commercial construction and development 36,581 32,308 44,776 Farmland 28,680 25,399 9,802 Other loans: Home equity 53,178 52,028 49,266 Consumer 16,635 17,252 15,293 Commercial 69,951 69,538 55,836 Agricultural 18,145 16,758 2,394 Unearned loan fees (1,029 ) (1,008 ) (1,008 ) - ------- - - ------- - - ------- - Total loans 581,728 566,982 508,132 Allowance for loan losses (6,150 ) (6,130 ) (5,225 ) - ------- - Net loans 575,578 560,852 502,907 Accrued interest and dividends receivable 3,668 3,212 2,174 Mortgage servicing rights, net 6,716 6,613 6,127 Premises and equipment, net 27,969 27,364 20,040 Cash surrender value of life insurance 14,670 14,575 14,289 Real estate and other repossessed assets acquired in settlement of loans, net 457 639 493 Goodwill 12,124 12,124 7,034 Core deposit intangible 1,702 1,859 328 Deferred tax asset, net 2,012 2,040 1,132 Other assets 253 472 1,385 Total assets $ 826,827 $ 815,935 $ 710,214 - ------- - - ------- - - ------- - Liabilities: Deposit accounts: Noninterest bearing 133,736 133,933 91,811 Interest bearing 479,439 492,002 422,454 Total deposits 613,175 625,935 514,265 Accrued expense and other liabilities 5,535 4,697 4,867 FHLB advances and other borrowings 91,469 69,528 104,182 Other long-term debt, net 24,843 24,827 24,778 Total liabilities 735,022 724,987 648,092 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; 8,000,000 shares authorized; 5,718,942, 5,718,942 and 4,083,127 shares issued; 5,460,452, 5,460,452 and 3,811,409 shares outstanding at June 30, 2018, March 31, 2018 and June 30, 2017, respectively) 57 57 41 Additional paid-in capital 51,890 51,849 22,444 Unallocated common stock held by Employee Stock Ownership Plan (559 ) (601 ) (725 ) Treasury stock, at cost (258,490, 258,490 and 271,718 shares at June 30, 2018, March 31, 2018 and June 30, 2018, respectively) (2,826 ) (2,826 ) (2,971 ) Retained earnings 44,862 44,020 42,460 Accumulated other comprehensive (loss) income (1,619 ) (1,551 ) 873 - ------- - - ------- - - ------- - Total shareholders' equity 91,805 90,948 62,122 Total liabilities and shareholders' equity $ 826,827 $ 815,935 $ 710,214 - ------- - - ------- - - ------- -

Income Statement (Unaudited) (Unaudited) (Dollars in thousands, Three Months Ended Six Months Ended except per share data) ----------------------------------------- June 30, March 31, June 30, June 30, --------------------------- 2018 2018 2017 2018 2017 - --------- - - --------- - - --------- - - --------- - - --------- - Interest and dividend Income: Interest and fees on loans $ 7,862 $ 6,872 $ 6,174 $ 14,734 $ 11,744 Securities 1,021 989 714 2,010 1,443 available-for-sale FRB and FHLB dividends 74 79 36 153 76 Interest on deposits in 18 17 1 35 1 banks Other interest income 1 - - 1 1 - --------- - - --------- - - --------- - - --------- - - --------- - Total interest and 8,976 7,957 6,925 16,933 13,265 dividend income Interest Expense: Interest expense on 494 426 376 920 756 deposits FHLB advances and other 315 337 322 652 527 borrowings Other long-term debt 357 347 347 704 619 - --------- - Total interest expense 1,166 1,110 1,045 2,276 1,902 - --------- - - --------- - - --------- - - --------- - - --------- - Net interest income 7,810 6,847 5,880 14,657 11,363 Loan loss provision 24 502 302 526 603 - --------- - - --------- - - --------- - - --------- - - --------- - Net interest income after 7,786 6,345 5,578 14,131 10,760 loan loss provision Noninterest income: Service charges on deposit 214 226 239 440 471 accounts Net gain on sale of loans 1,720 1,439 2,263 3,159 4,088 Mortgage loan servicing 563 560 509 1,123 1,056 fees Wealth management income 147 132 180 279 321 Interchange and ATM fees 271 225 228 496 434 Appreciation in cash surrender value 146 124 126 270 250 of life insurance Net gain (loss) on sale of 15 (105 ) (14 ) (90 ) (14 ) available-for-sale securities Net loss on sale of real estate (32 ) (25 ) (24 ) (57 ) (25 ) owned and other repossessed property Other noninterest income 40 103 63 143 197 - --------- - - --------- - - --------- - - --------- - - --------- - Total noninterest income 3,084 2,679 3,570 5,763 6,778 Noninterest expense: Salaries and employee 5,461 4,909 4,586 10,370 9,019 benefits Occupancy and equipment 835 828 672 1,663 1,389 expense Data processing 673 637 566 1,310 1,133 Advertising 298 278 269 576 458 Amortization of mortgage 369 241 262 610 524 servicing fees Amortization of core deposit 235 102 107 337 214 intangible and tax credits Loan costs 179 136 134 315 299 Federal insurance premiums 69 69 36 138 120 Postage 84 50 51 134 99 Legal, accounting and 184 142 200 326 285 examination fees Consulting fees 25 17 59 42 108 Acquisition costs 131 234 - 365 - Write-down on real estate owned and - - 9 - 45 other repossessed property Other noninterest expense 701 681 669 1,382 1,366 - --------- - - --------- - - --------- - - --------- - Total noninterest expense 9,244 8,324 7,620 17,568 15,059 Income before income taxes 1,626 700 1,528 2,326 2,479 Income tax expense 293 127 462 420 650 - --------- - - --------- - - --------- - - --------- - - --------- - Net income $ 1,333 $ 573 $ 1,066 $ 1,906 $ 1,829 - --------- - - --------- - - --------- - - --------- - - --------- - Basic earnings per share $ 0.24 $ 0.11 $ 0.28 $ 0.35 $ 0.48 - --------- - - --------- - - --------- - - --------- - - --------- - Diluted earnings per share $ 0.24 $ 0.11 $ 0.27 $ 0.35 $ 0.47 - --------- - - --------- - - --------- - - --------- - - --------- - Weighted average shares outstanding (basic EPS) 5,460,452 5,311,527 3,811,409 5,386,401 3,811,409 - --------- - - --------- - - --------- - - --------- - - --------- - Weighted average shares outstanding (diluted EPS) 5,524,912 5,375,987 3,869,885 5,450,861 3,872,765 - --------- - - --------- - - --------- - - --------- - - --------- -

ADDITIONAL FINANCIAL INFORMATION Three Months Ended ----------------------------------------- (Dollars in thousands, except per share data)(Unaudited) June 30, March 31, June 30, 2018 2018 2017 - --------- - - --------- - - --------- - Performance Ratios (for the Quarter): Return on average assets 0.65 % 0.28 % 0.61 % Return on average equity 5.83 % 2.58 % 6.97 % Net interest margin*** 4.18 % 3.77 % 3.66 % Efficiency ratio* 82.70 % 86.31 % 79.50 % Performance Ratios (Year-to-date): Return on average assets 0.46 % 0.28 % 0.54 % Return on average equity 4.94 % 2.58 % 6.10 % Net interest margin*** 3.91 % 3.77 % 3.66 % Efficiency ratio* 84.38 % 86.31 % 81.83 % Asset Quality Ratios and Data: As of or for the Three Months Ended ----------------------------------------- June 30, March 31, June 30, 2018 2018 2017 - --------- - - --------- - - --------- - Nonaccrual loans $ 1,500 $ 1,740 $ 1,611 Loans 90 days past due and still accruing 159 - 79 Restructured loans, net - - - - --------- - - --------- - - --------- - Total nonperforming loans 1,659 1,740 1,690 Other real estate owned and other repossessed assets 457 639 493 Total nonperforming assets $ 2,116 $ 2,379 $ 2,183 - --------- - - --------- - - --------- - Nonperforming loans / portfolio loans 0.29 % 0.31 % 0.33 % Nonperforming assets / assets 0.26 % 0.29 % 0.31 % Allowance for loan losses / portfolio loans 1.06 % 1.08 % 1.03 % Allowance / nonperforming loans 370.71 % 352.30 % 309.17 % Gross loan charge-offs for the quarter $ 24 $ 130 $ 189 Gross loan recoveries for the quarter $ 20 $ 8 $ 37 Net loan charge-offs for the quarter $ 4 $ 122 $ 152 Capital Data (At quarter end): Tangible book value per share $ 14.28 $ 14.09 $ 14.37 Shares outstanding 5,460,452 5,460,452 3,811,409 Tangible common equity to tangible assets 9.59 % 9.60 % 7.79 % Other Information: Average total assets for the quarter $ 823,916 $ 816,688 $ 700,682 Average total assets year to date $ 835,643 $ 816,688 $ 682,486 Average earning assets for the quarter $ 749,725 $ 736,002 $ 644,885 Average earning assets year to date $ 755,885 $ 736,002 $ 626,791 Average loans for the quarter ** $ 585,366 $ 573,015 $ 512,138 Average loans year to date ** $ 579,191 $ 573,015 $ 493,393 Average equity for the quarter $ 91,462 $ 88,677 $ 61,134 Average equity year to date $ 77,170 $ 88,677 $ 59,959 Average deposits for the quarter $ 623,285 $ 605,572 $ 512,736 Average deposits year to date $ 614,300 $ 605,572 $ 515,054 * 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. ** includes loans held for sale ***Based on actual days. Previously calculated on a 360 day basis.

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 Year Ended ------------------------------ June 30, March 31, June 30, June 30, --------------------- 2018 2018 2017 2018 2017 - ------ - - ----- - - ----- - - ------ - - ------ - Calculation of Efficiency Ratio: Noninterest expense $ 9,244 $ 8,324 $ 7,620 $ 17,568 $ 15,059 Intangible asset amortization (235 ) (102 ) (107 ) (337 ) (214 ) - ------ - - ----- - - ----- - - ------ - - ------ - Efficiency ratio numerator 9,009 8,222 7,513 17,231 14,845 Net interest income 7,810 6,847 5,880 14,657 11,363 Noninterest income 3,084 2,679 3,570 5,763 6,778 Efficiency ratio denominator 10,894 9,526 9,450 20,420 18,141 Efficiency ratio 82.70 % 86.31 % 79.50 % 84.38 % 81.83 %

Tangible Book Value and Tangible (Unaudited) Assets ----------------------------------------- (Dollars in thousands, except per June 30, March 31, June 30, share data) 2018 2018 2017 - --------- - - --------- - - --------- - Tangible Book Value: Shareholders' $ 91,805 $ 90,948 $ 62,122 equity Goodwill and core deposit (13,826 ) (13,983 ) (7,362 ) intangible, net - --------- - - --------- - - --------- - Tangible common shareholders' $ 77,979 $ 76,965 $ 54,760 equity - --------- - - --------- - - --------- - Common shares outstanding at end of 5,460,452 5,460,452 3,811,409 period Common shareholders' equity (book value) per share $ 16.81 $ 16.66 $ 16.30 (GAAP) Tangible common shareholders' equity (tangible book value) per share $ 14.28 $ 14.09 $ 14.37 (non-GAAP) Tangible Assets: Total $ 826,827 $ 815,935 $ 710,214 assets Goodwill and core deposit (13,826 ) (13,983 ) (7,362 ) intangible, net - --------- - - --------- - - --------- - Tangible assets (non-GAAP) $ 813,001 $ 801,952 $ 702,852 - --------- - - --------- - - --------- - Tangible common shareholders' equity to tangible assets (non-GAAP) 9.59 % 9.60 % 7.79 %

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