- EBMT recently acquired First Community Bancorp, a smaller bank in Montana. It closed on April 30, 2022.
- The acquisition looks to be a good purchase, but we expect losses in its securities and loan allowance that might not be included in the recently released pro-forma consolidated financials.
- The rising interest rate environment will likely cause further losses in securities, and increases in deposit interest expense.
- The slowing of the mortgage banking segment is seemingly cutting a key revenue component in half.
- Adjusting for these factors, the current price of EBMT is sitting at an estimated 119 P/E and 7% above book value.
For further details see:
Eagle Bancorp Montana: Rising Rates And Slowing Mortgages