BEO Bancorp directors vote to conserve capital and build reserves
CONTACT:
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.
Forward-Looking Statements
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.
