Business Context and Reporting Period
Company: Eagle Bancorp Montana, Inc. (EBMT)
Filing Type: Form 8-K (Current Report)
Date of Report: March 13, 2025
Subject: Non-reliance on previously issued financial statements regarding the Consolidated Statement of Cash Flows for the nine-month period ended September 30, 2024.
Key Financial Metrics and Material Changes
This filing addresses a classification error in the financing section of the Consolidated Statement of Cash Flows for the nine months ended September 30, 2024. The error involved the presentation of borrowings from and repayments to the Federal Home Loan Bank (FHLB) and other sources.
- Short-term Borrowings: Previously reported as a net advance of $14.26 million; corrected to a net payment of $40.74 million.
- Long-term Borrowings: Previously reported as a net advance of $29.17 million; corrected to $105.00 million in advances and $20.83 million in payments.
- Net Impact: The misstatements offset one another within the Cash Flows from Financing Activities section. Consequently, there was no impact to the Net Cash Provided by Financing Activities line item.
- Other Statements: The error had no impact on the Consolidated Statements of Financial Condition, Income, Comprehensive Income, Changes in Shareowners' Equity, or the Notes to the Consolidated Financial Statements.
Management Commentary and Outlook
Management, in consultation with the independent registered public accounting firm (Moss Adams, LLP) and the Audit Committee, determined that the Impacted Statement of Cash Flows should no longer be relied upon. The Company has provided corrected disclosure in its Annual Report on Form 10-K for the year ended December 31, 2024. The Company does not intend to file an amendment to the previously filed Quarterly Report on Form 10-Q containing the impacted statement.
Investor Verification Checklist
- Verify the corrected Consolidated Statement of Cash Flows in the 2024 Form 10-K rather than the previously filed 10-Q for the period ended September 30, 2024.
- Confirm that the Net Cash Provided by Financing Activities remains unchanged despite the reclassification of short-term and long-term borrowing flows.
- Review the 2024 Form 10-K for the accurate presentation of FHLB and other borrowing advances and repayments.