BEO Bancorp Reports 2nd Quarter Earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (July 12, 2010) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 2nd quarter 2010 consolidated net income of $459,000 or $0.50 per share, compared to $564,000 or $0.63 per share for 2nd quarter 2009. Year to date earnings are $903,000, up 21.4% year over year. Total assets were $251.1 million, up 7.4% year over year. Net loans of $187.67 million were up 0.3% from the same period in 2009, while deposits were at $218.1 million, up 14.4% year over year.
“Our second quarter results track nicely with first quarter and year to date results are strong. Steady performance and our growth in assets are gratifying as we continue to see improvement in all of our markets,” said president and CEO, Jeff Bailey. “In May, we celebrated the grand opening of our new building in Enterprise. The reception we have received in Wallowa County has been phenomenal. That market continues to be very supportive to our style of banking and is, frankly, one of our more profitable branches.”
Chief Financial Officer, Mark Lemmon, said “Year to date Return on Average Assets is 0.74% and Return on Average Equity is 12.08%, compared to 0.64% and 10.56%, respectively, year over year.” Lemmon went on to say, “Our low cost source of funds is adding to the bottom line in a favorable manner.”
Chief Operations Officer, Gary Propheter, said “Even with the ongoing low rate environment, we continue to see strong growth in deposits. An increase of 14.4% year over year is impressive. We are very happy with the faith that our customers place in our staff and our bank.”
“Our past due loans at quarter end were minimal and we have seen progress in moving some of the non-performing assets off of our books,” said EVP and Chief Credit Officer, E. George Koffler. “We have seen our typical seasonal increase in loans, but we are also seeing new opportunities in our trade area,” added Koffler.
“Continued profitability and working through the lasting effects of the “great recession” are keys to our success during the second half of 2010. I appreciate the hard work of our employees and the continued support of our shareholders and customers,” concluded Bailey.
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.