HELENA, Mont., Aug. 21, 2018 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,”
“Eagle”), the holding company of Opportunity Bank of Montana, today announced that it has reached an agreement to acquire Big Muddy
Bancorp, Inc. and its wholly owned subsidiary, The State Bank of Townsend, Townsend, Montana (“Townsend”). Opportunity Bank’s
acquisition of the $110 million in assets Townsend, which is structured as an all stock deal, will further solidify its position as
the fourth largest Montana based bank with approximately $940 million in assets. Townsend currently operates 4 branches in
Townsend, Dutton, Denton and Choteau and the acquisition will provide Opportunity with an additional $110 million in assets, $94
million in deposits, and $92 million in gross loans. Opportunity Bank will have, upon completion of the transaction, 21 retail
branches in Montana.
The board of directors for both companies unanimously approved the transaction, which is subject to the
approvals of bank regulatory agencies, the shareholders of Big Muddy Bancorp, Inc. and other customary closing conditions. Upon
completion of the transaction, Ben Ruddy, currently President of Big Muddy Bancorp, Inc. will join the Boards of Directors of both
Eagle and Opportunity Bank and will lead the new branch efforts in north central Montana.
“We are excited about the opportunity that enables Big Muddy Bancorp, Inc., and The State Bank of Townsend to
join the Eagle team,” stated Peter J. Johnson, President and CEO of Eagle. “This transaction presents a unique opportunity for
Eagle to expand our presence in the attractive markets of Broadwater, Fergus, and Teton Counties. The combination provides
the ability to create revenue and cost synergies while offering The State Bank of Townsend customers a broader product offering,
increased lending limits, and an expanded branch delivery system that stretches throughout the state of Montana. We continue
to diversify our balance sheet and our geographic footprint while approaching our target of $1 billion in total assets.”
“This combination allows us to partner with a strong community bank that is focused on providing great customer
service, a deep commitment to the communities where it operates, and an excellent environment for employees,” said Ruddy. “We
look forward to working with the management team at Eagle to better serve our customers and become the bank of choice in our
markets.”
Under the terms of the definitive agreement signed by the parties, Big Muddy Bancorp shareholders will receive
20.49 shares of Eagle common stock, for a total transaction value of approximately $19.0 million.
The deal is expected to close during the first quarter of 2019. Eagle was represented by Panoramic Capital
Advisors and Nixon Peabody LLP while Big Muddy was represented by Ballard Spahr LLP and Vining Sparks IBG, LP.
Investor Conference Call and Supplementary Information
Management will host a conference call regarding this announcement on Wednesday, August 22 at 8:00 a.m. MT
(10:00 a.m. EDT). Investment professionals are invited to dial (888) 317-6016 to participate in the call. A replay will
be available for two weeks at (877) 344-7529 using access code 10123515. A slide presentation to accompany management's
commentary may be accessed from Eagle Bancorp's Form 8-K filing with the SEC or at www.opportunitybank.com.
About the Company
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana and is the holding
company of Opportunity Bank, a community bank established in 1922 that serves consumers and small businesses in Montana through 17
retail 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 Market under the symbol “EBMT.”
Important Information for Investors and Shareholders
This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such
jurisdiction. Eagle will file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4
containing a proxy statement of Big Muddy Bancorp and a prospectus of Eagle, and Eagle will file other documents with respect to
the proposed merger. A definitive proxy statement/prospectus will be mailed to shareholders of Big Muddy Bancorp, Inc.
Investors and security holders of Big Muddy Bancorp are urged to read the proxy statement/prospectus and other documents
that will be filed with the SEC carefully and in their entirety when they become available because they will contain important
information. Investors and security holders will be able to obtain free copies of the registration statement and the proxy
statement/prospectus (when available) and other documents filed with the SEC by Eagle through the website maintained by the SEC at
http://www.sec.gov. Copies of the documents filed with the SEC by Eagle will be available free of charge on Eagle’s internet
website or by contacting Eagle.
Eagle, Big Muddy Bancorp, Inc., their respective directors and executive officers and other members of
management and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction.
Information about the directors and executive officers of Eagle is set forth in its proxy statement for its 2018 annual meeting of
shareholders, which was filed with the SEC on March 13, 2018 and its Current Reports on Form 8-K. Other information regarding the
participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or
otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they
become available.
Safe Harbor Statement
Certain statements contained in this presentation that are not statements of historical fact are
forward-looking statements. These forward-looking statements, which are based on certain assumptions and describe our future plans,
strategies and expectations, can generally be identified by the use of the words “may”, “would”, “could”, “will”, “expect”,
“anticipate”, “project”, “believe”, “intend”, “plan” and “estimate”, as well as similar words and expressions. These
forward-looking statements include statements related to our projected growth, our anticipated acquisitions, including
statements related to the expected timing, completion and other effects our anticipated acquisitions, our anticipated future
financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on
results of operations and financial condition from expected developments or events, or business and growth strategies, including
projections of future amortization and accretion, the impact of the anticipated internal growth and plans to establish or
acquire banks or the assets of failed banks.
These forward-looking statements involve significant risks and uncertainties that could cause our actual
results to differ materially from those anticipated in such statements. Potential risks and uncertainties include the
following:
- the inability to obtain the requisite regulatory and shareholder approvals for the anticipated acquisitions and meet
other closing terms and conditions;
- the reaction to the anticipated acquisitions of all the banks’ customers, employees and counter-parties or difficulties
related to the transition of services;
- the timing to consummate the proposed merger;
- the risk that a condition to closing of the proposed merger may not be satisfied;
- the diversion of management time on issues related to the proposed merger;
- the difficulties and risks inherent with entering new markets;
- the results of the audit of the Big Muddy Bancorp,Inc. financial statements;
- general economic conditions (both generally and in our markets) may be less favorable than expected, which could result
in, among other things, a continued deterioration in credit quality, a further reduction in demand for credit and a further
decline in real estate values;
- our ability to raise additional capital may be impaired if markets are disrupted or become more volatile;
- costs or difficulties related to the integration of the banks we may acquire may be greater than expected;
- restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our
goals;
- governmental monetary and fiscal policies as well as legislative or regulatory changes, including changes in accounting
standards and compliance requirements, may adversely affect us;
- competitive pressures among depository and other financial institutions may increase significantly;
- changes in the interest rate environment may reduce margins or the volumes or values of the loans we make or have
acquired;
- other financial institutions have greater financial resources and may be able to develop or acquire products that enable
them to compete more successfully than we can;
- our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in
the banking industry;
- adverse changes may occur in the bond and equity markets;
- war or terrorist activities may cause further deterioration in the economy or cause instability in credit
markets;
- economic, governmental or other factors may prevent the projected population, residential and commercial growth in the
markets in which we operate; and
- we will or may continue to face the risk factors discussed from time to time in the periodic reports we file with the
SEC.
For these forward-looking statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
You should not place undue reliance on the forward-looking statements, which speak only as of the date of
this presentation. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise. See Item 1A, Risk Factors, in our Annual Report on form 10-K for the year ended December 31, 2017, and otherwise in our
SEC reports and filings, for a description of some of the important factors that may affect actual outcomes.
Contacts:
Peter J. Johnson, President and CEO
(406) 457-4006
Laura F. Clark, EVP and CFO
(406) 457-4007
