BEO Bancorp Reports 2nd Quarter Earnings
Jeff Bailey, President & CEO (541) 676-0201
Mark Lemmon, EVP & CFO, (541) 676-0201
Heppner, Oregon, (July 24, 2012). BEO Bancorp (OTCBB:BEOB) and its subsidiary, Bank of Eastern Oregon, announced 2nd quarter 2012 consolidated net income of $552,000, or $0.55 per share, compared to $325,000 or $0.35 per share for second quarter 2011. Year to date earnings were $1,227,000, up 48.4% year over year. Total assets were $268.9 million, up 6.9% year over year. Net loans of $215.1 million were up 7.8% from the same period in 2011, while deposits were at $238.3 million, up 7.1% year over year.
“We are pleased with the 2nd quarter as well as the year-to-date results. Our profitability metrics have shown a steady improvement over the past few years and we continue to see good opportunities for growth,” said President and CEO, Jeff Bailey.
Chief Financial Officer, Mark Lemmon said, “Return on Average Assets is 0.82% and Return on Average Equity is 11.73%, compared to 0.52% and 7.94%, respectively, year over year.” Lemmon went on to say, “With continued strong core earnings and increased loan demand, the bank is positioned well looking to the last half of 2012. It is important to note that shareholders’ equity has increased 15.1% year over year. We remain the best capitalized bank in eastern Oregon.”
Chief Operations Officer, Gary Propheter said, “The low interest rate environment continues to drag on and all indications are that it will continue for quite awhile, but even with continued low rates deposits continue to strengthen. We are pleased with the continued growth across our branch network and welcome our new customers to the bank. We appreciate our customers’ confidence in Bank of Eastern Oregon’s safety and soundness and appreciation for our great products and friendly service.”
“The growth in both loans and deposits is good to see. While our local agricultural-based economies are doing relatively well, the typical unrest associated with an election year is compounded by the painfully slow national economy as well as the unrest in the European Union. We continue to take steps to clean up our balance sheet and make prudent additions to our loan loss reserve,” added Bailey.
“During the second quarter, we opened new loan production offices in Pendleton and Island City. We are pleased with the reception we have received in those areas and look forward to welcoming even more customers as we strive to meet the growing ag demand in our markets,” concluded Bailey.
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About BEO Bancorp
BEO Bancorp is the holding company for Bank of Eastern Oregon, which operates 12 branches and four loan production offices in ten 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, Ontario, Pendleton, and Island City. Bank of Eastern Oregon also operates a mortgage division and offers brokerage services through BEO Financial Services. The bank’s website is 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.