Eagle Bancorp Montana, Inc. announced that it has sold $15 million in subordinated notes to certain qualified institutional accredited investors through a private placement offering. The subordinated notes were issued on June 10, 2020 and will mature on July 1, 2030. The subordinated notes will bear interest at an annual fixed rate of 5.5% per annum, payable semi-annually in arrears on January 1 and July 1 of each year from July 1, 2020 to, but excluding, July 1, 2025. From and including July 1, 2025 to, but excluding, July 1, 2030 or the earlier redemption date, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 509.0 basis points, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. The Company estimates that the net cash proceeds from the sale of the subordinated notes will be approximately $14.7 million, and the subordinated notes are expected to qualify as Tier 2 capital for regulatory purposes. The Company intends to use the net proceeds from the offering for general corporate purposes, including but not limited to the redemption of the Company’s outstanding $10 million of 6.75% subordinated notes due 2025.