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CST: 22/08/2019 03:19:17   

Eagle Bancorp Montana Earns $1.2 Million in First Quarter 2019; Declares Regular Quarterly Cash Dividend to $0.0925 per Share

120 Days ago

HELENA, Mont., April 23, 2019 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana, today reported net income was $1.2 million, or $0.18 per diluted share, in the first quarter of 2019 compared to $1.4 million, or $0.26 per diluted share, in the fourth quarter of 2018 and $573,000, or $0.11 per diluted share, in the first quarter of 2018.  There was $1.2 million in acquisition-related expenses in the first quarter of 2019, compared to $582,000 in the preceding quarter and $234,000 in the first quarter a year ago.

Additionally, Eagle’s board of directors declared a regular quarterly cash dividend of $0.0925 per share on April 18, 2019.  The dividend will be payable June 7, 2019 to shareholders of record May 17, 2019.  The current annualized yield is 2.16% based on recent market prices.

“The highlight of the first quarter was completing the acquisition of Big Muddy Bancorp,” said Peter J. Johnson, President and CEO.  “The closed acquisition added approximately $107 million in assets, $93 million in deposits and $92 million in gross loans, and provided us a unique opportunity to expand our market presence, and lending activities, throughout the state.  This acquisition, augmented with our acquisition of Ruby Valley Bank a year earlier had a dramatic impact on our operating results for the first quarter of 2019, substantially increasing the scale and reach of the company and providing tremendous opportunity for future revenue growth. Our larger branching network will allow us to better serve our new and existing customers.” 

On January 1, 2019, Eagle completed its acquisition of Big Muddy Bancorp, Inc. and its wholly owned subsidiary, The State Bank of Townsend, located in Townsend, Montana, in a transaction valued at $16.4 million. 

On January 31, 2018, Eagle completed its acquisition of Ruby Valley Bank, which added approximately $94 million in assets, $82 million in deposits and $55 million in gross loans.

First Quarter 2019 Highlights (at or for the three-month period ended March 31, 2019, except where noted)

  • Net income was $1.2 million, or $0.18 per diluted share.
  • Purchase discount on loans from the Big Muddy Bancorp portfolio was $2.8 million at January 1, 2019, (the “acquisition date”) of which $2.4 million remains as of March 31, 2019.
  • Purchase discount on loans from the Ruby Valley Bank portfolio was $1.8 million at January 31, 2018, (the “acquisition date”) of which $1.2 million remains as of March 31, 2019.
  • The accretion of the loan purchase discount into loan interest income from both the Big Muddy Bancorp and the Ruby Valley Bank transactions was $520,052 in the first quarter, compared to $64,000 in the preceding quarter.
  • Net interest margin (“NIM”) improved 37-basis points to 4.33% in the first quarter of 2019, compared to 3.96% in the preceding quarter, and improved 56-basis points compared to 3.77% in the first quarter a year ago.  
  • Revenues (net interest income before the provision for loan losses, plus non-interest income) increased 39.8% to $13.3 million, compared to $9.5 million in the first quarter a year ago. 
  • Total loans increased 28.4% to $728.0 million at March 31, 2019, compared to $567.0 million a year ago.
  • Commercial real estate loans increased 41.7% to $304.9 million at March 31, 2019, compared to $215.2 million a year earlier. 
  • Total deposits increased 18.4% to $741.0 million at March 31, 2019, compared to $625.9 million a year ago.
  • Capital ratios remain well capitalized with a tangible common shareholders’ equity ratio of 9.71% at March 31, 2019.
  • Declared quarterly cash dividend of $0.0925 per share.
  • Excluding tax effected acquisition costs, non-GAAP earnings per diluted share were $0.33 for the first quarter of 2019.

Balance Sheet Results

“While a majority of the loan growth is due to the recent acquisition of Big Muddy Bancorp, organic loan production remains strong, increasing $19.3 million, or 3.1% during the first quarter,” said Johnson.  Total loans increased 28.4% to $728.0 million at March 31, 2019, compared to $567.0 million a year earlier and increased 18.0% compared to $616.9 million three months earlier.

Eagle originated $77.4 million in new residential mortgages during the quarter, excluding construction loans, and sold $72.3 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.59%.  This production compares to residential mortgage originations of $79.4 million in the preceding quarter with sales of $74.7 million.

Commercial real estate loans increased 41.7% to $304.9 million at March 31, 2019, compared to $215.2 million a year earlier.  Residential mortgage loans increased 3.3% to $116.6 million, compared to $112.9 million a year earlier.  Commercial loans increased 6.3% to $73.9 million, home equity loans increased 5.0% to $54.6 million, construction and development loans increased 39.3% to $45.0 million, and residential construction loans increased 4.1% to $27.7 million compared to a year ago.  Agricultural and farmland loans increased 107.1% to $87.3 million at March 31, 2019, compared to $42.2 million a year earlier.

Eagle’s total deposits were $741.0 million at March 31, 2019, a 18.3% increase compared to $626.6 million at December 31, 2018, and a 18.4% increase compared to $625.9 million a year ago.  Noninterest checking accounts represent 24.3%, interest bearing checking accounts represent 15.0%, savings accounts represent 16.9%, money market accounts comprise 16.5% and time certificates of deposit make up 27.3% of the total deposit portfolio at March 31, 2019.

Total assets increased 20.1% to $979.6 million at March 31, 2019, compared to $815.9 million a year ago, in large part due to the Big Muddy Bancorp acquisition.  At December 31, 2018, total assets were $853.9 million.  Shareholders’ equity increased 18.4% to $112.3 million at March 31, 2019, compared to $94.8 million three months earlier and increased 23.5% compared to $90.9 million one year earlier.  Tangible book value was $14.50 per share at March 31, 2019, compared to $14.82 per share at December 31, 2018, and $14.09 per share a year earlier. 

Operating Results

Eagle’s NIM improved 37 basis points to 4.33% in the first quarter of 2019, compared to 3.96% in the preceding quarter, and a 56 basis point improvement compared to 3.77% in the first quarter a year ago.  “Our NIM benefitted substantially due to the increase in interest accretion on purchased loans as a result of our two recent acquisitions,” said Johnson.  “The interest accretion on purchased loans totaled $520,052 and resulted in a 24-basis point increase in the NIM during the first quarter, compared to $64,000 and a three-basis point increase in the NIM during the preceding quarter.” The investment securities portfolio decreased to $140.2 million at March 31, 2019, compared to $158.4 million a year ago, which had a positive impact on average yields on earning assets, increasing to 5.13% from 4.38% a year ago due to deploying funds into higher yielding loans.

Eagle’s first quarter revenues increased 16.7% to $13.3 million, compared to $11.4 million in the preceding quarter and increased 39.8% when compared to $9.5 million in the first quarter a year ago.  Net interest income before the provision for loan loss increased 23.2% to $9.4 million in the first quarter compared to $7.6 million in the preceding quarter and increased 36.9% compared to $6.8 million in the first quarter a year ago. 

Noninterest income increased 3.7% to $3.9 million in the first quarter of 2019, compared to $3.8 million in the preceding quarter, and increased 47.1% compared to $2.7 million in the first quarter a year ago.  The net gain on sale of mortgage loans totaled $2.6 million in the first quarter of 2019 compared to $2.3 million in the preceding quarter and $1.4 million in the first quarter a year ago. 

Eagle’s first quarter noninterest expenses were $11.3 million compared to $9.6 million in the preceding quarter and $8.3 million in the first quarter a year ago.  Acquisition costs totaled $1.2 million for the current quarter, compared to $582,000 for the preceding quarter and $234,000 in the first quarter one year ago.  

For the first quarter of 2019, income tax expense totaled $261,000, for an effective tax rate of 18.1%, compared to $127,000 in the first quarter of 2018.

Credit Quality

The allowance for loan losses represented 133.6% of nonaccrual loans at March 31, 2019, compared to 175.2% three months earlier and 182.3% a year earlier.  The first quarter provision for loan losses was $604,000, compared to $260,000 in the preceding quarter and $502,000 in the first quarter a year ago. 

Total other real estate owned (“OREO”) and other repossessed assets was $354,000 at March 31, 2019, compared to $107,000 at December 31, 2018 and $639,000 at March 31, 2018.  Nonperforming assets (“NPAs”), consisting of nonaccrual loans, OREO and other repossessed assets, loans delinquent 90 days or more, and restructured loans, were $5.7 million at March 31, 2019, or 0.58% of total assets, compared to $3.9 million, or 0.45% of total assets three months earlier and $4.0 million, or 0.49% of total assets a year earlier.  The increase was primarily from acquired assets.

Nonperforming loans (“NPLs”) were $5.3 million at March 31, 2019, compared to $3.8 million at December 31, 2018, and $3.4 million a year earlier.  The increase in nonperforming loans were primarily a result of the acquired loans.

Eagle had net loan charge-offs of $104,000 in the first quarter of 2019, compared to net charge-offs of $11,000 in the fourth quarter of 2018 and net charge-offs of $122,000 in the first quarter a year ago.  The allowance for loan losses was $7.1 million, or 0.98% of total loans at March 31, 2019, compared to $6.6 million, or 1.07% of total loans at December 31, 2018 and $6.1 million, or 1.08% 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 assets of 9.71% at March 31, 2019.  (Shareholders’ equity, less goodwill and core deposit intangible to tangible assets).

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 21 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 with Ruby Valley Bank and The State Bank of Townsend, 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; 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; 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 and any litigation which we inherited from our January 2019 merger with The State Bank of Townsend); 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; cyber incidents, or theft or loss of Company or customer data or money; the effect of our acquisitions of Ruby Valley Bank and The State Bank of Townsend, 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)
            March 31, December 31, March 31,
              2019     2018     2018  
                 
Assets:              
  Cash and due from banks       $   9,054   $   10,144   $   7,679  
  Interest bearing deposits in banks           2,225       1,057       1,641  
  Federal funds sold             -        -        3,591  
    Total cash and cash equivalents     11,279     11,201     12,911  
  Securities available-for-sale, at fair value       140,161     142,165     158,417  
  Federal Home Loan Bank stock         4,807     5,011     3,704  
  Federal Reserve Bank stock         2,040     2,033     2,019  
  Investment in Eagle Bancorp Statutory Trust I       155     155     155  
  Loans held-for-sale, at fair value         8,075     7,318     8,979  
  Loans:              
  Real estate loans:              
  Residential 1-4 family         116,621     116,939     112,891  
  Residential 1-4 family construction       27,692     27,168     26,608  
  Commercial real estate         304,861     256,784     215,208  
  Commercial construction and development       44,998     41,739     32,308  
  Farmland           45,129     29,915     25,399  
  Other loans:              
  Home equity           54,637     52,159     52,028  
  Consumer           19,043     16,565     17,252  
  Commercial           73,937     59,053     69,538  
  Agricultural           42,185     17,709     16,758  
  Unearned loan fees         (1,083 )   (1,098 )   (1,008 )
    Total loans         728,020     616,933     566,982  
  Allowance for loan losses         (7,100 )   (6,600 )   (6,130 )
    Net loans         720,920     610,333     560,852  
  Accrued interest and dividends receivable       5,005     3,479     3,212  
  Mortgage servicing rights, net         7,318     7,100     6,613  
  Premises and equipment, net         35,364     29,343     27,364  
  Cash surrender value of life insurance, net       23,564     20,545     14,575  
  Real estate and other repossessed assets acquired in        
  settlement of loans, net         354     107     639  
  Goodwill           15,710     12,124     12,124  
  Core deposit intangible         3,311     1,498     1,859  
  Deferred tax asset, net         1,304     1,190     2,040  
  Other assets           236     301     472  
    Total assets       $ 979,603   $ 853,903   $ 815,935  
                 
Liabilities:              
  Deposit accounts:              
  Noninterest bearing           180,070     142,788     133,933  
  Interest bearing           560,975     483,823     492,002  
    Total deposits       741,045     626,611     625,935  
  Accrued expense and other liabilities       9,061     5,388     4,697  
                 
  FHLB advances and other borrowings       92,313     102,222     69,528  
  Other long-term debt, net         24,892     24,876     24,827  
    Total liabilities       867,311     759,097     724,987  
                 
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;      
  6,714,983, 5,718,942  and 5,718,942 shares issued; 6,431,693,      
  5,477,652 and 5,460,452 shares outstanding at March 31, 2019,      
  December 31, 2018 and March 31, 2018, respectively)     67     57     57  
  Additional paid-in capital         68,506     52,051     51,849  
  Unallocated common stock held by Employee Stock Ownership Plan   (435 )   (477 )   (601 )
  Treasury stock, at cost (283,290, 241,290 and 258,490 shares at March      
  31, 2019, December 31, 2018 and March 31, 2018, respectively)   (3,372 )   (2,640 )   (2,826 )
  Retained earnings           47,512     46,926     44,020  
  Accumulated other comprehensive income (loss)     14     (1,111 )   (1,551 )
    Total shareholders' equity     112,292     94,806     90,948  
    Total liabilities and shareholders' equity   $ 979,603   $ 853,903   $ 815,935  
                 


Income Statement       (Unaudited)  
(Dollars in thousands, except per share data)     Three Months Ended
              March 31, December 31, March 31,
                2019     2018     2018  
Interest and dividend income:          
  Interest and fees on loans     $ 10,048   $ 7,965   $ 6,872  
  Securities available-for-sale       958     1,022     989  
  FRB and FHLB dividends       95     89     79  
  Interest on deposits in banks       18     3     17  
  Other interest income       2     -     -  
    Total interest and dividend income       11,121     9,079     7,957  
Interest expense:            
  Interest expense on deposits       787     602     426  
  FHLB advances and other borrowings       594     509     337  
  Other long-term debt       365     361     347  
    Total interest expense       1,746     1,472     1,110  
Net interest income         9,375     7,607     6,847  
Loan loss provision         604     260     502  
    Net interest income after loan loss provision       8,771     7,347     6,345  
                   
Noninterest income:            
  Service charges on deposit accounts       261     262     226  
  Net gain on sale of loans       2,599     2,294     1,439  
  Mortgage loan servicing fees       612     597     560  
  Wealth management income       112     127     132  
  Interchange and ATM fees       275     276     225  
  Appreciation in cash surrender value of life insurance     157     173     124  
  Net loss on sale of available-for-sale securities       (55 )   (74 )   (105 )
  Other noninterest income       (20 )   146     78  
    Total noninterest income       3,941     3,801     2,679  
                   
Noninterest expense:          
  Salaries and employee benefits       5,992     5,406     4,909  
  Occupancy and equipment expense       1,034     812     828  
  Data processing       928     666     637  
  Advertising         268     287     278  
  Amortization of mortgage servicing fees       247     297     241  
  Amortization of core deposit intangible and tax credits     254     181     102  
  Loan costs         135     163     136  
  Federal insurance premiums       60     43     69  
  Postage           68     56     50  
  Legal, accounting and examination fees       274     209     142  
  Consulting fees       31     46     17  
  Acquisition costs       1,171     582     234  
  Write-down on real estate owned and other repossessed property     -     28     -  
  Other noninterest expense       806     794     681  
    Total noninterest expense       11,268     9,570     8,324  
                   
Income before provision for income taxes       1,444     1,578     700  
Provision for income taxes       261     134     127  
Net income         $ 1,183   $ 1,444   $ 573  
                   
Basic earnings per share     $ 0.18   $ 0.27   $ 0.11  
Diluted earnings per share     $ 0.18   $ 0.26   $ 0.11  
Weighted average shares          
  outstanding (basic EPS)       6,450,325     5,471,856     5,311,527  
Weighted average shares          
  outstanding (diluted EPS)       6,510,485     5,533,465     5,375,987  
                   


ADDITIONAL FINANCIAL INFORMATION Three Months Ended
(Dollars in thousands, except per share data)(Unaudited)
March 31, December 31, March 31,
        2019     2018     2018  
Performance Ratios (For the quarter):      
  Return on average assets   0.49%     0.68%     0.28%  
  Return on average equity   4.38%     6.19%     2.58%  
  Net interest margin     4.33%     3.95%     3.77%  
  Core efficiency ratio*   73.92%     77.20%     83.85%  
           
Performance Ratios (Year-to-date):      
  Return on average assets   0.49%     0.60%     0.28%  
  Return on average equity   4.38%     5.44%     2.58%  
  Net interest margin     4.33%     3.96%     3.77%  
  Core efficiency ratio*   73.92%     79.69%     83.85%  
           
Asset Quality Ratios and Data: As of or for the Three Months Ended
      March 31, December 31, March 31,
        2019     2018     2018  
           
  Nonaccrual loans   $ 4,506   $ 2,268   $ 1,740  
  Loans 90 days past due and still accruing   788     1,477     -  
  Restructured loans, net   22     22     1,622  
  Total nonperforming loans   5,316     3,767     3,362  
  Other real estate owned and other repossessed assets   354     107     639  
  Total nonperforming assets $ 5,670   $ 3,874   $ 4,001  
           
  Nonperforming loans / portfolio loans   0.73%     0.61%     0.59%  
  Nonperforming assets / assets   0.58%     0.45%     0.49%  
  Allowance for loan losses / portfolio loans   0.98%     1.07%     1.08%  
  Allowance / nonperforming loans   133.56%     175.21%     182.33%  
  Gross loan charge-offs for the quarter $ 124   $ 22   $ 130  
  Gross loan recoveries for the quarter $ 20   $ 11   $ 8  
  Net loan charge-offs for the quarter $ 104   $ 11   $ 122  
           
Capital Data (At quarter end):      
  Tangible book value per share $ 14.50   $ 14.82   $ 14.09  
  Shares outstanding   6,431,693     5,477,652     5,460,452  
  Tangible common equity to tangible assets   9.71%     9.66%     9.60%  
           
Other Information:
     
  Average total assets for the quarter $ 966,828   $ 845,267   $ 816,688  
  Average total assets year to date $ 966,828   $ 829,186   $ 816,688  
  Average earning assets for the quarter $ 878,672   $ 764,095   $ 736,002  
  Average earning assets year to date $ 878,672   $ 750,127   $ 736,002  
  Average loans for the quarter ** $ 726,657   $ 610,412   $ 573,015  
  Average loans year to date ** $ 726,657   $ 590,059   $ 573,015  
  Average equity for the quarter $ 108,122   $ 93,290   $ 88,677  
  Average equity year to date $ 108,122   $ 91,527   $ 88,677  
  Average deposits for the quarter $ 724,820   $ 624,327   $ 605,572  
  Average deposits year to date $ 724,820   $ 617,182   $ 605,572  
           
* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of
costs and intangible asset amortization, by the sum of net interest income and non-interest income.  
** Includes loans held for sale      

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 core efficiency ratio and tangible book value per share, which are non-GAAP financial measures.  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.  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.

Core Efficiency Ratio     (Unaudited)  
(Dollars in thousands, except per share data)       Three Months Ended
            March 31, December 31, March 31,
              2019     2018     2018  
Calculation of Core Efficiency Ratio:        
  Noninterest expense   $ 11,268   $ 9,570   $ 8,324  
  Acquisition costs     (1,171 )   (582 )   (234 )
  Intangible asset amortization     (254 )   (181 )   (102 )
    Core efficiency ratio numerator     9,843     8,807     7,988  
                 
  Net interest income     9,375     7,607     6,847  
  Noninterest income     3,941     3,801     2,679  
    Core efficiency ratio denominator     13,316     11,408     9,526  
                 
  Core efficiency ratio     73.92%     77.20%     83.85%  
                 
Tangible Book Value and Tangible Assets   (Unaudited)
(Dollars in thousands, except per share data)   March 31, December 31, March 31,
              2019     2018     2018  
Tangible Book Value:        
  Shareholders' equity   $ 112,292   $ 94,806   $ 90,948  
  Goodwill and core deposit intangible, net     (19,021 )   (13,622 )   (13,983 )
    Tangible common shareholders' equity   $ 93,271   $ 81,184   $ 76,965  
                 
  Common shares outstanding at end of period   6,431,693     5,477,652     5,460,452  
                 
  Common shareholders' equity (book value) per share (GAAP) $ 17.46   $ 17.31   $ 16.66  
                 
  Tangible common shareholders' equity (tangible book value)      
    per share (non-GAAP)   $ 14.50   $ 14.82   $ 14.09  
                 
Tangible Assets:          
  Total assets     $ 979,603   $ 853,903   $ 815,935  
  Goodwill and core deposit intangible, net     (19,021 )   (13,622 )   (13,983 )
    Tangible assets (non-GAAP)   $ 960,582   $ 840,281   $ 801,952  
                 
  Tangible common shareholders' equity to tangible assets      
    (non-GAAP)     9.71%     9.66%     9.60%  
                 


Earnings Per Diluted Share, Excluding Acquisition Costs (Unaudited)
(Dollars in thousands, except per share data)   March 31, December 31, March 31,
              2019     2018     2018  
                 
Net interest income after loan loss provision   $   8,771   $   7,347   $   6,345  
Noninterest income           3,941       3,801       2,679  
                 
Noninterest expense           11,268       9,570       8,324  
  Acquisition costs           (1,171 )     (582 )     (234 )
Noninterest expense, excluding acquisition costs       10,097       8,988       8,090  
                 
Income before income taxes         2,615       2,160       934  
Income tax expense, excluding acquisition costs        
  related taxes           473       183       169  
Net Income, excluding acquisition costs   $   2,142   $   1,977   $   765  
                 
Diluted earnings per share (GAAP)     $   0.18   $   0.26   $   0.11  
Diluted EPS, excluding acquisition          
  costs (non-GAAP)       $   0.33   $   0.36   $   0.14  
                 
                 
Return on Average Assets, Excluding Acquisition Costs (Unaudited)
(Dollars in thousands, except per share data)   March 31, December 31, March 31,
              2019     2018     2018  
                 
Net income, excluding acquisition costs   $   2,142   $   1,977   $   765  
Average total assets year to date     $   966,828   $   829,186   $   816,688  
Return on average assets, excluding acquisition costs     0.89%     0.95%     0.37%  
                 

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

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