BEO Bancorp reports strong 2010 earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (February 11, 2011) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced consolidated year end 2010 earnings of $1,656,016, an increase of 328% when compared to $386,721 in 2009. Earnings per share were $1.80 versus $0.43 in 2009. Total assets increased 4.96% from $239.8 million to $251.7 million. Net loans ended 2010 at $191.8 million, up 13.9% year over year. Deposits increased 9.3% from $204.4 million to $223.5 million.
“2010 was a strong year for the bank, especially when you consider the lingering effects of the recession and the slow pace of the economic recovery. While our rural communities continue to experience relatively high unemployment, we saw good things in the farm and ranch economy,” said president and CEO, Jeff Bailey. “The lingering effects of the housing crisis which surfaced in 2008 continue to work their way through the national as well as regional economy. 2011 will be an interesting year as we see how the national recovery plays out,” continued Bailey.
“Total shareholders’ equity increased 7.96% year over year to $15.64 million. Our Tier 1 capital ratio of 10.17% matches up favorably to our peer banks across the nation and especially within our market area,” said Chief Financial Officer, Mark Lemmon. “Return on Average Assets is 0.67% and Return on Average Equity is 11.00% compared to 0.17% and 2.75%, respectively, year over year.” Lemmon went on to say, “Our low cost source of funds continues to fuel profits.”
Chief Operations Officer, Gary Propheter said, “Deposit growth continues to be a strong point for the bank. We have seen good growth across all branches in our system. The continued trend of strong growth in core deposits tells us our customers are happy with Bank of Eastern Oregon’s style of banking, our flexible products, and the excellent, professional service provided by our banking teams.”
“With loan volume up 13.9 % year over year, it shows that we are seeing good opportunities within our footprint to loan money to qualified borrowers,” said EVP and Chief Credit Officer, E. George Koffler. “We continue to see progress in moving some of the non-performing assets (NPA’s) off of our books. Since the first quarter of 2010, NPA’s have decreased from 2.99% to a year end percentage of 1.39%. We see this as a very positive sign but will continue to contend with issues created by the slow recovery,” concluded Koffler.
“We are pleased with the 2010 results. The improved performance and growth over the past year is attributed to the loyalty of our shareholders, customers, and employees. The recent recession has been challenging, but I am confident there are brighter days ahead,” concluded Bailey.
For further information on the company or to access internet banking, please visit our website at www.beobank.com.
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.
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