Police say Thursday afternoon they issued a search warrant for Montgomery's home.
According to police, Montgomery confessed sometime later to meeting the boy on the Internet and having a sexual encounter.
"We did do a search warrant at his house, and we did recover a computer that will be part of the investigation," says Lt. Terry Hastings.
Montgomery reportedly told police everything was consensual.
"After an interview of both people, we did charge him with sexual assault in the fourth degree," Hastings says.
Church leaders released the following statement Friday afternoon, saying they are deeply concerned for the boy and his family, and they are prepared to offer professional counseling to help them cope.
"We intend to fully cooperate with the investigation by the police as it proceeds. Again, we express our deep sense of remorse for the situation and our commitment to assist in the help and healing process that is needed. We have nothing more to add to this statement at this time."
Montgomery resigned his post Friday as pastor of the church.
In 2009, Montgomery also provided financial advice through several guest appearances on Today's THV.
He was released on bond late Thursday night. The investigation is ongoing.