BEO Bancorp Reports 3rd Quarter Earnings
Jeff Bailey, President & CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (October 6, 2011). BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 3rd quarter 2011 consolidated net income of $502,000 or $0.54 per share, compared to $518,000 or $0.56 per share for 3rd quarter 2010. Year to date earnings were $1,350,000 in 2011, as compared to $1,421,000 for the same period in 2010. Total assets were $251.8 million, up 0.9% year over year. Net loans of $198.25 million were up 3.7% from the same period in 2010, while deposits were at $222.1 million, up 0.5% year over year.
“We are pleased with the 3rd quarter and year to date results. Loan volume has increased, and we continue to search out good lending opportunities,” said president and CEO, Jeff Bailey.
Chief Financial Officer, Mark Lemmon said, “We continue to increase value to our stockholders as shareholders’ equity is up 8.5% year over year. Our tangible book value per share stands at over $18, a growth of more than $6 per share since the banking crisis and recession began in 2007. This is a direct result of continued profitability and prudent capital management. Year to date Return on Average Assets is 0.72% and Return on Average Equity is 10.98%. That return on equity is impressive considering the Bank’s tier one capital ratio is well above our Oregon and national peer averages.” Lemmon went on to say, “Increased loan volume and steady deposit levels fuel our net interest margin, which dictates overall profitability.”
Chief Operations Officer, Gary Propheter said, “In spite of continued low interest rates, our deposit base is steady. Our branch personnel do a tremendous job of providing excellent customer service. The Bank continues to adapt to the changing regulatory environment, and is happy to say we have been able to meet these challenges without imposing new fees and charges on customers.”
“This year’s wheat harvest was fabulous with yields well above average and good prices. Cattle prices are also strong and summer feed was plentiful. The overall quality of our ag loan portfolio is very good, and we continue to work hard at moving non-performing assets off of our books,” said EVP and Chief Credit Officer, E. George Koffler. “A common perception in the national media is that banks are not making loans. That is not true. We are continually seeking loan opportunities, and we are making loans to qualified borrowers,” added Koffler.
“Local factors point towards an improving economy, but the slow recovery in the national economy, high unemployment, and the uncertainty associated with the European Union economic situation are concerning. All of these factors will play a role in how our local economy performs over the next few years,” said Bailey. “I appreciate the efforts of our employees and the support of our customers and shareholders in making our fine institution successful even in these turbulent times,” concluded Bailey.
For further information on the company or to access internet banking, please visit our website at .
About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, is locally owned by over 300 individuals and organizations, and 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.