EXHIBIT 99.1

Eagle Bancorp Montana Earns $428,000 in First Quarter; Declares Regular Quarterly Cash Dividend

HELENA, Montana, Oct. 25, 2011 (GLOBE NEWSWIRE) -- Eagle Bancorp Montana, Inc. (Nasdaq:EBMT), (the "Company," "Eagle"), the holding company of American Federal Savings Bank, today reported it earned $428,000, or $0.11 per diluted share, in the first fiscal quarter ended September 30, 2011, compared to $876,000, or $0.22 per diluted share, in the first quarter a year ago.

The Company also announced its board of directors has declared a regular quarterly cash dividend of $0.07125 per share, to be paid November 25 to shareholders of record on November 4, 2011.

"The first quarter provided further evidence of the progress we are making in implementing our strategies to strengthen our banking franchise," stated Pete Johnson, President and Chief Executive Officer. "We have improved our core business by continuing to change the composition of our deposit portfolio, growing non-interest bearing and other core deposit balances, while strengthening our balance sheet liquidity and capital base and effectively managing controllable operating expenses. We are in an excellent position for future growth and are exploring all growth opportunities in the markets that we serve."

First Quarter Fiscal 2011 Highlights

• Net income was $428,000 or $0.11 per diluted share.
• Net interest margin remained strong at 3.66%.
• Nonperforming assets were $6.5 million, or 1.94% of total assets.
• Nonperforming loans totaled $5.2 million, or 2.77% of total loans.
• Net loans increased 4.50% to $186.2 million at 9/30/11, compared to $178.2 million a year earlier.
• Commercial real estate loans increased 25.1% year-over-year to $65.9 million and now comprise 35.1% of the total loan portfolio.
• Total deposits increased 4.71% year-over-year to $213.6 million.
• Capital ratios remain strong with a Tier 1 leverage ratio of 16.54%.
• Declared regular quarterly cash dividend of $0.07125 per share.

Balance Sheet Results

"The loan growth during the quarter was modest, with most of the increase coming from the commercial real estate portfolio," said Johnson. Total loans increased 4.50% to $187.8 million at September 30, 2011 compared to $179.5 million a year earlier.  Commercial real estate loans increased 25.1% to $65.9 million compared to $52.7 million a year earlier, while residential mortgage loans decreased 8.2% from the prior year to $68.7 million. Commercial loans increased 47.1% to $12.3 million and home equity loans decreased 4.94% to $27.7 million compared to a year ago.

Total assets were $335.9 million at September 30, 2011, compared to $330.8 million a year earlier. Total deposits increased 4.71% to $213.6 million at September 30, 2011 compared to $204.0 million a year earlier. Checking and money market accounts represent 43.6% of total deposits, savings accounts represent 17.5% of total deposits, and CDs make up 38.9% of the total deposit portfolio.

Shareholders' equity was $53.4 million at September 30, 2011, compared to $54.3 million a year ago and book value per share was $13.63 per share at September 30, 2011 compared to $13.29 per share a year earlier.  

Credit Quality

"During the first quarter two loans totaling approximately $2.2 million were placed on nonaccrual status," said Clint Morrison, SVP and CFO.  "While we are disappointed with the increase in total nonperforming loans we view these two loans as isolated incidents and are not reflective of the overall quality of the loan portfolio." 

Nonperforming loans (NPLs) were $5.2 million, or 2.77% of total loans at September 30, 2011, compared to $2.9 million, or 1.57% of total loans, three months earlier, and $2.1 million, or 1.19% of total loans, a year ago. Other real estate owned (OREO) and other repossessed assets were $1.3 million at September 30, 2011 compared to $1.2 million three months earlier and $1.2 million at September 30, 2010. 

Nonperforming assets (NPAs), consisting of nonperforming loans, OREO and other repossessed assets, and loans delinquent 90 days or more, totaled $6.5 million, or 1.94% of total assets, at September 30, 2011, compared to $4.1 million, or 1.24% of total assets in the preceding quarter, and $3.4 million, or 1.19% of total assets, a year ago. 

The first quarter provision for loan losses was $258,000, and Eagle recorded net charge-offs of $508,000. The provision for loan losses was $155,000 in the preceding quarter and $283,000 in the first quarter a year ago.  The allowance for loan losses now stands at $1.55 million, or 0.83% of total loans at June 30, 2011, compared to $1.80 million, or 0.96% of total loans at June 30, 2011, and $1.25 million, or 0.70% of total loans a year ago.

Operating Results

"The decrease in the net interest margin from the preceding quarter was primarily due to a higher balance of cash and liquid assets," said Morrison.  "We are actively seeking growth and investment opportunities, as a way to deploy these low yielding assets." The net interest margin was 3.66% in the first quarter of fiscal 2012, compared to 3.71% in the preceding quarter and 3.59% in the first quarter a year ago. Funding costs for the first quarter of 2012 decreased four basis points compared to the previous quarter while asset yields decreased nine basis points compared to the previous quarter.

Net interest income before the provision for loan loss increased 3.80% to $2.8 million in the first quarter of fiscal 2012, compared to $2.7 million in the first quarter a year ago. Primarily due to the net loss of $330,000 Eagle sustained in a fair value hedge and decreased gain on sale of loans, noninterest income was $569,000 in the first quarter of 2012, compared to $1.4 million in the first quarter a year ago.  "The net gain on sale of loans was $236,000 in the first quarter of fiscal 2012 compared to $827,000 in the first quarter a year ago, when mortgage loan activity was at a peak and we were successful at selling these loans in the secondary market," said Morrison. "As loan refinance activity has started to slow, the net gain on sale of loans has returned to more normalized levels."

Excluding the net loss on the fair value hedge, total noninterest income for the first quarter of fiscal 2012 would have been $899,000.

In the first quarter of fiscal 2012 noninterest expense was $2.5 million, compared to $2.7 million in the preceding quarter and $2.6 million in the first quarter a year ago.

Eagle's first quarter return on average equity (ROAE) was 3.22% compared to 6.52% for the first quarter a year ago. Return on average assets (ROAA) was 0.51% in the first quarter compared to 1.07% in the first quarter a year ago. 

Capital Management

Eagle Bancorp Montana continues to meet the well capitalized thresholds for regulatory purposes with a Tier 1 leverage ratio of 16.54% at September 30, 2011.

About the Company

Eagle Bancorp Montana, Inc. is the stock holding company of American Federal Savings Bank. American Federal Savings Bank was formed in 1922 and is headquartered in Helena, Montana.  It has additional branches in Butte, Bozeman and Townsend. Eagle Bancorp Montana, Inc. commenced operations on April 5, 2010 following the conversion of Eagle Financial MHC and the sale of Eagle Bancorp Montana, Inc.  Eagle's common stock trades on the NASDAQ Global Market under the symbol "EBMT."

Forward Looking Statements –

This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." These forward-looking statements include, but are not limited to statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions, either nationally or in our market areas, that are worse than expected; competition among depository and other financial institutions; loan demand or residential and commercial real estate values in Montana; inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets; and other economic, governmental, competitive, regulatory and technological factors that may affect our operations. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

CONTACT: Peter J. Johnson, President and CEO
         (406) 457-4006
         Clint J. Morrison, SVP and CFO
         (406) 457-4007