What the changes say
- Eagle Bancorp Montana added risks concerning ESG scrutiny, AI usage, and the OBBBA tax act.
What changed since the prior 10-K
New
- NewRisks Related to Economic and Market Conditions
Expectations around Environmental, Social and Governance practices, as well as climate change, and related legislative and regulatory initiatives may result in additional risk and operational changes and expenditures that could significantly impact our business
Conflicting state and federal ESG regulations and divergent stakeholder expectations may increase compliance costs and operational risks.
- NewRisks Related to Economic and Market Conditions
Natural disasters, geopolitical events, public health crises and other catastrophic events beyond our control could adversely affect us
Natural disasters, public health crises, and geopolitical events in the Middle East could damage properties and disrupt operations.
- NewRisks Related to Our Business
The adoption of artificial intelligence tools by us and our third‑party vendors and service providers may increase the risk of errors, omissions, unfair treatment or fraudulent behavior by our employees, clients or counterparties, or other third parties
Adopting artificial intelligence tools could increase errors, fraud, and compliance risks related to fair access to financial services.
- NewRisks Related to Our Business
We rely on dividends from the Bank for most of our revenue
The company relies primarily on bank dividends, which are legally restricted, to pay debt and common stock dividends.
- NewRisks Related to Our Business
Eagle uses models for business planning purposes that may not adequately predict future results
Financial models used for capital and liquidity planning may inaccurately predict outcomes, leading to potential losses or adverse regulatory decisions.
- NewRisks Related to Our Business
We could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision
The enactment of the One Big Beautiful Bill Act in July 2025 introduces tax changes that could affect our effective tax rate.
Dropped
- DroppedRisks Related to Economic and Market Conditions
We may be impacted by the retirement of London Interbank Offered Rate (“LIBOR”) as a reference rate
- DroppedRisks Related to Economic and Market Conditions
We are subject to physical and financial risks associated with climate change and other weather and natural disaster impacts
- DroppedRisks Related to Economic and Market Conditions
The emergence or continuation of widespread health emergencies or pandemics could have a material adverse effect on our business, results of operations and financial condition, and such effects will depend on future developments, which are highly uncertain and are difficult to predict
Reworded
- 84% rewrittenRisks Related to Our Business
Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis
Removed the disclosure confirming that the company had identified a material weakness in its internal control over financial reporting.
- 67% rewrittenRisks Related to Our Business
A continuation of recent turmoil in our industry, and responsive measures to manage it, could have an adverse effect on our financial position or results of operations
Updated to specifically discuss early 2023 bank failures, market volatility, deposit flight to too-big-to-fail banks, and increased competition for interest-bearing deposits.
- 60% rewrittenRisks Related to Our Business
Consumers may decide not to use banks to complete their financial transactions
No substantive changes were made to the text describing consumers bypassing banks for financial transactions.
- 50% rewrittenRisks Related to Economic and Market Conditions
Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including the recent military actions in Iran and the Middle East, escalating military tension between Russia and Ukraine, terrorism and other geopolitical events
Added specific references to military actions in Iran, the Middle East, and Russia-Ukraine tensions as geopolitical risks to financial markets.
Was: Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including escalating military tension between Russia and Ukraine, the Middle East, terrorism and other geopolitical events
- 26% rewrittenRisks Related to Our Business
Changes in interest rates may change the value of our mortgage servicing rights portfolio, which may increase the volatility of our earnings
Updated mortgage servicing rights discussion to note that interest rates began to decline in September 2025.
All 32 risk factors
Headings as the filing states them, in filing order.
Risks Related to Economic and Market Conditions
- 01Our business may be adversely affected by conditions in the financial markets and economic conditions generally and in our market areas in particular
- 02Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including the recent military actions in Iran and the Middle East, escalating military tension between Russia and Ukraine, terrorism and other geopolitical events50% rewritten
- 03Declines in home values could decrease our loan originations and increase delinquencies and defaults
- 04Changes in interest rates could adversely affect our results of operations and financial condition
- 05Strong competition may limit growth and profitability
- 06Expectations around Environmental, Social and Governance practices, as well as climate change, and related legislative and regulatory initiatives may result in additional risk and operational changes and expenditures that could significantly impact our businessNew
- 07Natural disasters, geopolitical events, public health crises and other catastrophic events beyond our control could adversely affect usNew
Risks Related to Our Business
- 08We hold certain intangible assets that could be classified as impaired in the future. If these assets are considered to be either partially or fully impaired in the future, our earnings and the book values of these assets would decrease
- 09Risks associated with system failures, interruptions, or breaches of security could negatively affect our earnings
- 10If the allowance for credit losses is not sufficient to cover actual credit losses, our earnings could decrease
- 11We could record future losses on our securities portfolio
- 12Changes in our accounting policies or in accounting standards could materially affect how we report our financial condition and results of operations
- 13Because we have increased our commercial real estate and commercial business loan originations, our credit risk has increased and continued downturns in the local real estate market or economy could adversely affect our earnings
- 14We continually encounter technological change
- 15The adoption of artificial intelligence tools by us and our third‑party vendors and service providers may increase the risk of errors, omissions, unfair treatment or fraudulent behavior by our employees, clients or counterparties, or other third partiesNew
- 16We depend on the services of our executive officers and other key employees
- 17We earn a significant portion of our noninterest income through sales of residential mortgages in the secondary market. We rely on the mortgage secondary market for some of our liquidity
- 18There can be no assurance we will be able to continue paying dividends on our common stock at recent levels
- 19We rely on dividends from the Bank for most of our revenueNew
- 20Our business strategy includes significant growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
- 21We may be unsuccessful in integrating the operations of the business we have acquired or expect to acquire in the future
- 22Failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis84% rewritten
- 23Changes in interest rates may change the value of our mortgage servicing rights portfolio, which may increase the volatility of our earnings26% rewritten
- 24Farmland and agriculture production lending presents unique credit risk
- 25Consumers may decide not to use banks to complete their financial transactions60% rewritten
- 26We face a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations
- 27We operate in a highly regulated environment and may be adversely affected by changes in laws and regulations
- 28Future legislation, regulatory reform or policy changes under the current U.S. administration could have a material effect on our business and results of operations
- 29If our investment in the Federal Home Loan Bank of Des Moines becomes impaired, our earnings and shareholders’ equity could decrease
- 30A continuation of recent turmoil in our industry, and responsive measures to manage it, could have an adverse effect on our financial position or results of operations67% rewritten
- 31Eagle uses models for business planning purposes that may not adequately predict future resultsNew
- 32We could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provisionNew
Other Eagle Bancorp Montana 10-Ks
- FY2024 10-K risk factors29 risks
Concentrated risk in $34.74 million of goodwill and $280.96 million in agricultural loans.
Filed Mar 14, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.