Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2026

Investment in Debt and Equity Securities and Other Trading Assets [Text Block]

NOTE 2. INVESTMENT SECURITIES

The amortized cost and fair values of securities, together with unrealized gains and losses, were as follows:

	March 31, 2026
			Gross		Gross
	Amortized		Unrealized		Unrealized					Fair
	Cost		Gains		Losses			ACL		Value
	(In Thousands)
Available-for-sale:
U.S. government and agency obligations	$	4,023	$	61	$	(116	)	$	-	$	3,968
U.S. treasury obligations		47,675		-		(3,749	)		-		43,926
Municipal obligations		126,641		1		(10,826	)		-		115,816
Corporate obligations		2,000		-		(30	)		-		1,970
Mortgage-backed securities		26,684		157		(1,064	)		-		25,777
Collateralized mortgage obligations		81,569		37		(4,707	)		-		76,899
Asset-backed securities		6,487		45		(1	)		-		6,531
Total	$	295,079	$	301	$	(20,493	)	$	-	$	274,887

	December 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized					Fair
	Cost		Gains		Losses			ACL		Value
	(In Thousands)
Available-for-sale:
U.S. government and agency obligations	$	4,179	$	62	$	(86	)	$	-	$	4,155
U.S. treasury obligations		47,665		-		(3,357	)		-		44,308
Municipal obligations		127,469		53		(9,198	)		-		118,324
Corporate obligations		2,000		-		(29	)		-		1,971
Mortgage-backed securities		27,222		180		(908	)		-		26,494
Collateralized mortgage obligations		83,907		49		(4,295	)		-		79,661
Asset-backed securities		6,720		60		(1	)		-		6,779
Total	$	299,162	$	404	$	(17,874	)	$	-	$	281,692

There was no sales activity for available-for-sale securities during the three months ended March 31, 2026 or 2025.

The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2026
	Amortized		Fair
	Cost		Value
	(In Thousands)
Due in one year or less	$	1,186	$	1,184
Due from one to five years		52,910		49,717
Due from five to ten years		68,858		61,270
Due after ten years		63,872		60,040
		186,826		172,211
Mortgage-backed securities		26,684		25,777
Collateralized mortgage obligations		81,569		76,899
Total	$	295,079	$	274,887

As of March 31, 2026 and December 31, 2025, securities with a fair value of $19,694,000 and $19,976,000, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The Company’s investment securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve or more months were as follows:

	March 31, 2026
	Less than 12 Months					12 Months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	-	$	-		$	1,811	$	(116	)
U.S. treasury obligations		-		-			43,926		(3,749	)
Municipal obligations		17,226		(541	)		97,723		(10,285	)
Corporate obligations		-		-			1,970		(30	)
Mortgage-backed securities and collateralized mortgage obligations		11,492		(97	)		70,783		(5,674	)
Asset-backed securities		1,356		-			147		(1	)
Total	$	30,074	$	(638	)	$	216,360	$	(19,855	)

	December 31, 2025
	Less than 12 months					12 months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	-	$	-		$	1,848	$	(86	)
U.S. treasury obligations		-		-			44,308		(3,357	)
Municipal obligations		4,250		(101	)		107,365		(9,097	)
Corporate obligations		-		-			1,971		(29	)
Mortgage-backed securities and collateralized mortgage obligations		5,961		(42	)		73,924		(5,161	)
Asset-backed securities		-		-			164		(1	)
Total	$	10,211	$	(143	)	$	229,580	$	(17,731	)

As of March 31, 2026 and December 31, 2025, 252 and 241 securities, respectively, were in unrealized loss positions. Based on analysis of available-for-sale debt securities with unrealized losses as of March 31, 2026, the Company determined the decline in value was unrelated to credit losses and was primarily caused by changes in interest rates and market spreads subsequent to the initial purchase of the securities. Management does not intend to sell and the Company is not likely to be required to sell these securities prior to maturity. As a result, no ACL was recorded on available-for-sale securities at March 31, 2026 and December 31, 2025. As part of this determination, consideration was given to the extent to which fair value was less than amortized cost, rating downgrades by a rating agency and other factors.

Eagle Bancorp Montana, Inc. 10-Q