BEO Bancorp directors vote to conserve capital and build reserves
E. George Koffler, CEO (541) 676-0222
Jeff Bailey, President & CCO (541) 676-0204
Mark Lemmon, EVP & CFO (541) 676-0224
Joey J. Warmenhoven, McAdams, Wright and Ragan, Market Maker, (866) 662-0351
Henry C. Stockman, Howe Barnes Hoefer & Arnett, Market Maker, (800) 346-5544
Heppner, Oregon – (OTCBB: BEOB). Conserving capital in these uncertain times was the primary message the Board of Directors of BEO Bancorp cited as they voted not to pay a quarterly dividend for the fourth quarter of 2008. In keeping with the core philosophy of the bank, it was decided that growing capital and building reserves in these turbulent times is the most prudent path for the bank and shareholders alike.
“The downturn in general economic conditions and in housing and construction, particularly in the past year, make this the right thing to do at this time. The board will re-evaluate the payment of dividends in the first quarter of 2009 and subsequent quarters as earning and credit quality improve and the need for a stronger capital position moderates,” said BEO Bancorp president and CEO, E. George Koffler. “We were pleased to be able to pay a $0.15 dividend in each of the first three quarters of 2008,” said Koffler.
“In January, BEO Bancorp expects to post good results for 2008. The results will be slightly less than 2007 record levels, despite adding nearly $1.5 million to reserve for loan losses over the course of the year. While the bank has avoided loan write-offs of any substantial amount, we continue to monitor and manage through an increase in problem loans,” added Koffler.
About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 12 branches and two loan production offices in nine eastern Oregon counties. Branches are located in Arlington, Ione, Heppner, Condon, Irrigon, Boardman, Burns, John Day, Prairie City, Fossil, Moro and Enterprise; loan production offices are located in Hermiston and Ontario. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. The bank’s website is 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.