Eagle Bancorp Montana Q2 profit rises 15% yr/yr

The company anticipates deposit costs will remain well-managed for the remainder of the year.

It said it remains focused on balance sheet positioning to help sustain net interest margin.

U.S. community bank Eagle Bancorp Montana said second-quarter net income and earnings per share rose year over year, but fell from the prior quarter.

Second-quarter net interest income increased from a year ago. The company also raised its quarterly dividend by 1.7% to $0.1475 per share.

• Net interest margin expansion — The company said net interest margin improved due to a decline in funding costs that more than offset modest compression in asset yields.
• Mortgage banking income — Higher residential mortgage originations and improved margins on mortgage sales supported noninterest income.
• Controlled deposit costs — Deposit costs continued to decline, reflecting repricing of maturing CDs and strength of the core deposit base, according to CFO Miranda Spaulding.