BEO Bancorp Reports 1ST Quarter Earnings
Jeff Bailey, President and CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (April 19, 2011) BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 1st quarter 2011 consolidated net income of $501,000, or $0.54 per share, compared to $444,000, or $0.49 per share for first quarter 2010. Total assets were $249.7 million, up 4.7% year over year. Net loans of $191.1 million were up 9.0% from the same period in 2010, while deposits were at $221.2 million, up 7.2% year over year.
“Our first quarter results come on the heels of a strong 2010. We are pleased that our efforts to control expenses and tackle remaining problem assets are paying off in the form of good earnings,” said president and CEO, Jeff Bailey.
Chief Financial Officer, Mark Lemmon said, “Return on Average Assets is 0.80% and Return on Average Equity is 12.60% compared to 0.74% and 11.96%, respectively, year over year.” Lemmon went on to say, “We are able to leverage a low cost of funds and decent core earnings into profits.”
Chief Operations Officer, Gary Propheter said, “We continue to be impressed with our growth of deposits. Even in this low rate environment we see strong growth. We attribute this to the excellent customer service provided by our experienced banking staff and the confidence our customers have in the safety and soundness of our bank.”
“The strength in the farm economy continues to bode well for our agricultural loan portfolio. The lasting effects of the housing crisis are waning and our non-performing assets are at a much more manageable level than a year ago,” said EVP and Chief Credit Officer, E. George Koffler.
“Sustained profitability and continuing to work through the remnants of the sluggish economy will be keys to our ongoing success in 2011. Bank of Eastern Oregon has strong capital as well as liquidity and we are looking for good opportunities to make loans in our footprint,” 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.