BEO Bancorp earnings grow 36.9%
E. George Koffler, President & CEO, (541) 676-020l
Mark Lemmon, EVP & CFO, (541) 676-0201
Joey J. Warmenhoven, McAdams, Wright and Ragan, Market Maker, (866) 662-0351
Henry C. Stockman, Howe Barnes Hoefer & Arnett, Market Maker, (800) 346-5544
(OTC Bulletin Board: BEOB)
Heppner, Oregon, (April 25, 2008). BEO Bancorp, parent company of Bank of Eastern Oregon, announced earning of $623,000 for the first quarter of 2008, compared to earnings of $455,000 in the first quarter of 2007, a 36.9% increase. Earnings per share improved from $0.52 to $0.71.
Total assets increased 11.4% year over year to $209,793,000. Total loans grew 29.1% to $152,355,000 and total deposits increased to $174,012,000, a 5.3% increase.
“We registered a solid start to 2008 in the first quarter,” said President and CEO, E. George Koffler. “The continued growth of good quality loans and the reduction of our cost of funds were the primary drivers of these good results,” Koffler added.
“We think 2008 will be a challenging year to maintain the excellent earnings we delivered recently. The aggressive reduction of rates by the Fed will make it difficult for financial institutions to maintain net interest margin levels of the past three years. The slowdown in the housing market will affect fee income generation and credit quality is always a concern when values decline as we have seen in parts of the state,” concluded Koffler.
Detailed financial exhibits are available on the bank’s website at www.beobank.com.
About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 11 branches and three loan production offices in nine eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil and Moro; loan production offices are located in Hermiston, Enterprise, and Ontario. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. For further information on the Company or to access Internet banking, please visit our website at www.beobank.com.
The statements contained in this release that are not historical facts are forward-looking statements based upon management’s current expectations and beliefs concerning future developments and their potential effect on BEO Bancorp. There can be no assurances that future developments affecting BEO Bancorp will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These risks and uncertainties include, but are not limited to:
(1) Competitive pressures in the banking and financial industries.
(2) Changes in interest rate environment.
(3) General economic conditions, nationally, regionally, and in operating markets.
(4) Changes in regulatory environment.
(5) Changes in business conditions and inflation.
(6) Changes in securities markets.
(7) Future credit loss experience.